CI Capital closes Fund III on $750m hard-cap

The fund was in market for less than three months and will follow CI Capital’s strategy of investing $25m to $100m in mid-market buyouts in North America.

CI Capital Partners has closed its third fund on its $750 million target and hard-cap, according to the firm.

CI Capital Investors III had been fundraising for less than three months leading up its final close and drew excess demand from investors including endowments, foundations, pension funds, financial institutions and family offices, it said. Additionally, CI founding chief executive Frederick Iseman and other investment professionals contributed over $100 million to the fund.

The firm said its third fund will follow CI’s strategy of making control investments. Its current portfolio includes Galls, a distributor of uniforms for law enforcement, fire safety, emergency medical, private security and corrections personnel that was acquired in 2011 and has made nine add-on acquisitions since. In 2014 it acquired specialty chemicals distributor Maroon Group, which has made two add-on acquisitions, according to CI Capital’s website.

CI Capital, a New York-based firm, entered the North American mid-market buyout market in 1993, since when it has made 26 acquisitions and 140 add-ons transactions, according to the firm’s website. It makes initial equity investments of between $25 million and $100 million in companies in the business services, distribution, health care services, government services and defence, and light manufacturing sectors.

The firm closed its second fund, CI Capital Investors II, on $620 million in April 2011, above its $500 million target. Fund II included limited partners such as German fund-of-funds RWB Private Capital Fonds and Seattle-based Casey Family Programs, according to PEI’s Research & Analytics.

A spokesman declined to comment on Fund III.

Monument Group served as the placement agent and Wachtell, Lipton, Rosen & Katz as legal counsel for the fund.

CI Capital now manages over $1.9 billion in assets.