Brazos closes Fund III on $700m hard cap

The Dallas, Texas-based firm’s third fund surpassed its $600m target after six months of fundraising.

Brazos Private Equity Partners has closed its third mid-market fund with $700 million (€479 million) in commitments.

The fund, which had been targeting $600 million, was marketed for six months by Credit Suisse's private placement group.

Its limited partners include “multinational government and corporate pension funds, endowments, foundations and financial institutions”, the Dallas, Texas-based firm said. Brazos partner Randall Fojtasek said the fund attracted several new limited partners.

Like its predecessor, which closed on $400 million in 2005, Fund III will target companies valued between $50 million and $400 million in the manufacturing, consumer, healthcare, distribution and financial services sectors.

The firm said the fund will also focus particularly on family-owned companies located in the US’ southwestern region.

The closure of Fund III brings Brazo’s capital under management to $1.4 billion. The firm’s first fund closed on $250 million in 2000.

In November 2007, the firm made its first two food industry acquisitions under a food and beverage investment initiative it launched in partnership with Wholesome Holdings Group, which is run by former Brach’s Confections chief Terry O’Brien. Brazos committed $60 million to the venture from Fund II. Wholesome and Brazos bought smoked meats producer Sadler’s Bar-B-Que Sales and frozen food manufacturer Golden County Foods, both for undisclosed amounts.