Oak Hill wraps up fourth PE fund at $2.65 bln

Oak Hill Capital Partners has closed its fourth private equity fund at $2.65 billion, beating its $2 billion target.

The limited partners of Oak Hill Capital Partners IV included endowments and foundations, public and corporate pension plans, sovereign wealth funds, insurance companies, financial institutions, consultants and family offices.

As with its previous strategy, the private equity firm will invest between $100 million and $300 million in middle-market companies mostly in North America. Oak Hill targets sectors such as consumer, retail and distribution, industrials, and services.

Oak Hill Fund IV has already invested over $900 million in companies including FirstLight Fiber, a fiber-optic bandwidth infrastructure services provider, and Checkers Drive-In Restaurants, an operator and franchiser of drive-thru hamburger quick-service restaurants.

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as counsel for Fund IV.

In 2009, Oak Hill closed its third fund at $3.8 billion, generating a net IRR of 10 percent and an investment multiple of 1.5x as of September 30, 2016, according to data provided by the California Public Employees Retirement System.

Photo: A man poses with dollars, after buying them at a money exchange in Caracas, February 24, 2015. Reuters/Carlos Garcia Rawlins