Brentwood’s Fund VI inches toward $1bn hard-cap

The consumer sector-focused mid-market firm has raised $984m as of 19 May.

Mid-market firm Brentwood Associates has surpassed its target for Brentwood Associates Private Equity VI and nearing its hard-cap, according to regulatory filings.

The Los Angeles-based firm has raised at least $983.7 million for Fund VI, according to Securities and Exchange Commission documents submitted by the firm on 19 May. This amount is above the $750 million target and near the $1 billion hard-cap listed in materials for the 11 April board meeting of the Los Angeles City Employees’ Retirement System.

LACERS committed $25 million to Fund VI, establishing a new partnership, the materials showed.

According to a source familiar with the matter, Brentwood launched its sixth fund around the end of November.

LACERS documents show the general partner hired Park Hill Group as the placement agent for Fund VI, and targets equity investments of $50 million to $125 million in consumer sector companies with EBITDA of between $5 million and $30 million.

The firm, which was founded in 1972, currently has 15 portfolio companies including spa and fitness chain Exhale, clothing company J. McLaughlin and online course provider The Great Courses, according to the GP’s website.

Brentwood is led by five partners: Bill Barnum, who formerly worked at Morgan Stanley’s investment banking division; Roger Goddu, a former chairman and chief executive officer of retail chain Montgomery Ward; Steve Moore, who had specialised in M&A at Donaldson, Lufkin & Jenrette; Eric Reiter, also from DLJ; and Rahul Aggarwal from DLJ.

Brentwood’s previous fund, Brentwood Associates Private Equity V, closed on $688 million in December 2014, above its $500 million target, as announced by the firm at the time.

Limited partners in that fund include Indiana Public Retirement System, LA84 Foundation and Canadian investment firm Dancap Private Equity, according to PEI data. Brentwood used UBS as Fund V’s placement agent, PEI data showed.

An earlier fund, 2006-vintage Brentwood Associates Private Equity IV, was generating a net internal rate of return of 14.8 percent as of 31 December 2015, according to documents from the Public Employees Retirement Association of Colorado.

Neither Brentwood nor Park Hill were available to comment.