Bertram to exceed $500m for Fund II

The firm, which focuses on the mid-market, expects to close on more than $500m in the next month.

Bertram Capital has reached its $500 million target for its second growth equity fund, and is expecting to exceed that figure before holding a final close.

A person with knowledge of the fundraising told PEO Bertram Growth Capital II would likely close on over $500 million within the next few weeks, but had yet to pin down a final close amount. Approximately $20 million will come from a general partner commitment, the person said. 

San Mateo, California-based firm Bertram focuses on buyouts and providing growth capital to mid-market companies in sectors such as healthcare, manufacturing, technology, and business services industries.

“We’re looking at several [companies] in the healthcare space and one in industrial manufacturing,” Jeff Drazan, managing director with Bertram, told PEO.

Jeff Drazan

Bertram invests between $20 million and $90 million in companies with revenues between $20 million and $150 million. Investors in Bertram’s funds include financial institutions, university endowments and corporate pension funds from North America and Europe.

Bertram’s first fund closed on $350 million in August of 2006, and is currently roughly 80 percent invested. Through the end of 2009, the fund had an IRR of 18.4 percent.

Bertram’s investments are managed by Drazan, a founding partner of Menlo Park, California-based technology investor Sierra Ventures, and brother Ken Drazan, founder and former chief executive officer of biopharmaceutical company Arginox Pharmaceuticals.