ABS Capital closes sixth fund on $420m

The Baltimore, Maryland-based firm has made four investments from the fund, which will focus on later-stage growth companies in the media and communications, healthcare, business services and software sectors.

ABS Capital Partners has closed its sixth fund on $420 million for growth investments in later-stage companies.

Limited partners in ABS VI include long-time ABS investors the Pennsylvania State Employees’ Retirement System and Partners Healthcare as well as new LPs like Abbott Capital and WP Global Partners.

The firm, which was established in 1990, has already made investments in four companies from the sixth fund, including Zoom Media, a digital media company; Liquidity Services, a former ABS portfolio company that runs an online auction marketplace for wholesale surplus and salvage assets; O4, which provides mobile sales force automation solutions and Tarpon Towers, a wireless communication tower company.

“While the economy is uncertain, we do see many CEOs playing offense in this environment and taking the opportunity to increase market share, make investments in their business or acquire other companies,” John Stobo, managing general partner of ABS said in a statement.

ABS has raised more than $2 billion since its inception and specialises in business services, healthcare, media and communications and software.

The firm’s portfolio company Rosetta Stone, which it majority-owns along with Norwest Equity Partners, completed an initial public offering in April, raising $112 million. The two firms acquired Rosetta Stone in  a management buyout reportedly $62 million in January 2006.