Brentwood targets $500m for Fund V

The firm is seeking slightly more than its Fund IV that collected $440m, and has exited five companies during the past 12 months.

Brentwood Associates has launched its fifth flagship buyout fund targeting $500 million, according to documents filed with the US Securities and Exchange Commission.

The consumer-focused firm has been returning capital to its investors via five portfolio company sales during the past 12 months, and last month completed dividend recapitalisations of restaurant franchisee K-Mac and paper product retailer The Paper Source. The K-Mac recap was financed using “excess capacity” from the company’s existing $252 million credit facility, while the Paper Source recap was financed through a new $50 million credit facility, according to a statement. 

Brentwood did not reduce its stake in either company as a result of the recapitalisations, but returned “a significant amount of proceeds” to its investors, according to the statement. 

The firm was unavailable for comment at press time. 

UBS is acting as placement agent for Brentwood Associates Private Equity V. The firm’s Fund IV collected $440 million in 2008. That fund was generating a 2.2x return multiple and 10.94 percent internal rate of return as of 31 December 2012, according to performance figures from the Washington State Investment Board.

Other limited partners in Fund IV include the Colorado Public Employees’ Retirement Fund, the Indiana Public Employees’ Retirement Fund and the Metropolitan Life Insurance Company, according to Private Equity International’s Research & Analytics division.

Brentwood has remained active with new investments during the past 12 months, acquiring direct marketing and specialty retailers Sundance and Soft Surroundings and vegan restaurant chain The Veggie Grill.

Led by partner Bill Barnum, Brentwood was founded in 1972 and manages an equity pool of more than $650 million.