Evergreen Pacific hits hardcap at $425m for Fund II

The Pacific Northwest buyout firm, whose founders spun out of Seattle mid-market firm Northwest Capital Appreciation, exceeded its $400m target in less than two months.

Evergreen Pacific Partners, a middle market firm based in Washington State, has closed its second fund on $425 million (€274 million), bringing its capital under management to $700 million.

Washington’s largest private equity fund, Evergreen Pacific surpassed its $400 million target in less than two months of fundraising, garnering commitments largely from returning investors, according to a statement.

Fund II’s limited partners include the Washington State Investment Board, Pennsylvania Public Schools Employees’ Retirement System (PSERS), Credit Suisse and The Guardian Life Insurance Company of America.

The firm will employ the same strategy as it did for its debut fund, closed on $275 million in March 2005, which is to target manufacturing, distribution and media companies in the Western US region.

Evergreen Pacific was founded in 2003 by Timothy Bernardez, TJ McGill and Michael Nibarger.

The three had worked together for the preceding four years at Northwest Capital Appreciation, a Seattle mid-market firm, where they invested roughly $92 million, achieving a 34 percent internal rate of return, according to documents on PSER’s website.

“The track record includes seven realised investments that returned $90 million at a 2.6 multiple of invested capital and a 45 percent IRR,” according to PSERS, which committed up to $50 million to Evergreen Pacific’s first fund and up to $100 million to its second.

Evergreen Pacific’s acquisitions and investments include Phoenix, Arizon-based Western Broadband, San Diego-headquartered Finest City Broadcasting and Seattle’s Gene Juarez Salons & Spas.