Aquiline closes third fund on $1.1bn

The US mid-market fund will seek investments in financial services companies, similar to its predecessors.  

Aquiline Capital Partners has closed its third fund, Aquiline Financial Services Fund III, on $1.1 billion, beating its $1 billion target, the firm said.

A source close to the matter told Private Equity International that the fund held a first close in November 2014.

Investors in the fund include Oregon Public Employees' Retirement System and Oregon State Treasury, which invested in its previous vehicle, and Danish pension fund PKA AIP and asset manager Conning, according to PEI Research & Analytics.

This fund will follow Aquiline's strategy of investing in mid-market companies in the financial services sector, including banking and credit, insurance, investment management and markets, and financial technology and services businesses, it said.

It has made five investments so far, in US truck lending and leasing company Engs Commercial Finance, capital markets compliance software company Fenergo, payment software and processing company OmegaFi, US retirement and college savings services provider Ascensus, and residential property insurance underwriter Wellington Insurance Group.

Stanwich Advisors was the lead placement agent and Simpson Thacher & Bartlett the legal counsel.

The latest fund is significantly larger than Aquiline Financial Services II, which raised $743 million in 2011, well short of its $2 billion target, according to PEI Research & Analytics.

Aquiline has raised more than $6.5 billion via its funds and co-investments, it said.