Cotton Creek Capital raises $215m

The Texas, US-based private equity firm closes third lower mid-market fund.

Cotton Creek Capital has held a final close of Cotton Creek Capital Partners III at $215 million, failing to hit the initial target of $250 million. The fund is a continuation of the firm’s investments into growing lower mid-market companies based in the US, with EBITDA between $5 million and $15 million. Sectors of interest include manufacturing, value-add distribution, industrials, specialty chemical, building products, food and beverage, and business services.

The Employees Retirement System of Texas committed $40 million to the firm’s third fund. The rest of the investor base consists of endowments, foundations, family offices and high-net-worth families and individuals.

Cotton Creek Capital Partners II closed at $168.79 million in June 2014 and was also backed by Texas ERS.