ACON closes Fund III on $751m

The mid-market firm exceeded its $600m target after more than a year in market and has invested roughly 20% of the fund in three investments.

Washington DC-based ACON Investments has closed its Fund III on $751 million.

Fund III was launched during the first quarter of 2011 with a $600 million target and had collected around $400 million by January 2012, a source with knowledge of the situation told Private Equity International in a previous interview. The fund received commitments from the California State Teachers’ Retirement System, the Los Angeles Fire and Police Pension System and the New York State Teachers’ Retirement System, according to Private Equity International’s Research & Analytics division. Roughly 65 percent of the capital in Fund III comes from existing investors.

Mercury Capital Advisors, CV Brokerage and Emerging Market Strategies acted as placement agents for Fund III. 

ACON has invested roughly 20 percent of the capital in Fund III in three investments. The firm's second fund closed in 2006 and collected $374 million. That fund was generating a 2x multiple and 20.9 percent net IRR as of 30 September 2012, according to performance data from the California Public Employees’ Retirement System.

ACON typically invests between $20 million and $150 million in sectors including media, financial services, retail, consumer products, healthcare and energy.

In addition to its two flagship buyout funds, the firm also manages a $173 million fund focused on Latin America and a $208 million co-investment fund focused on North America. 

Founded in 1996, ACON invests in mid-market companies and manages private equity funds and special purpose partnerships with investments in the US and Latin America.