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Ex-Carlyle heads raise $870m for debut fund

Stellex Capital Management has held a final close on the vehicle above target after two years of fundraising.

Stellex Capital Management, a mid-market private equity firm launched by two former Carlyle executives, has held the final close on its first fund after two years of fundraising.

The New York-headquartered firm raised $870 million for Stellex Capital Partners, beating its $750 million target, according to a statement. The fund launched in June 2015, according to a filing with the US Securities and Exchange Commission.

“We are pleased with the support of our LP's and their underlying constituents and we are focused on creating value for them,” founding partners Ray Whiteman and Michael Stewart said. “Our team has deployed capital into multiple investments and maintains a robust pipeline of interesting [midmarket] opportunities.”

The fund held a first close on $586 million last August, according to PEI data.

An early limited partner in the fund was the Teacher's Retirement System of Texas, which committed $50 million in November 2015, according to the pension's board meeting documents December 2015.

The fund is US and Europe-focused and will make structured private equity buyouts or purchases of secondary market debt. Its sector focuses are automotive, aerospace, building products, defense, industrial equipment, metal fabrication and transportation. Its target investment size is between $25 million to $100 million, with additional capacity available.

The fund already has three portfolio companies: Virginia based MHI Ship Repair & Services; Michigan based forestry equipment maker Morbark; and UK based Dominion Hospitality, a pubs and inns landlord. 

It made its first investment, MHI Ship & Repair, in November 2015.

Whiteman and Stewart, who were co-heads of Carlyle Strategic Partners and partners at the firm, founded Stellex in 2014.

Sixpoint Partners and BearTooth Advisors acted as placement agents on the fundraise, according to two SEC filings.