FFL closes Fund IV on $2bn

The middle-market firm attracted existing investors, pension funds, endowments, foundations and family offices to Fund IV

San Francisco-based middle-market firm FFL closed its FFL Capital Partners IV on over $2 billion (£1.31 billion; €1.79 billion), beating its $1.5 billion target.

The firm's fourth fund, which launched in 2013, was raised over a year period from both domestic and international institutional investors, according to a statement, and includes a $75 million commitment from FFL. The state of Washington was the biggest new investor in the fund.

“We have very good support from our existing investors,” president and co-chief executive officer Spencer Fleischer told Private Equity International. “We think that the US middle market remains a very attractive place to invest; if you pick wisely, you can find growth.”

Twenty-four percent of the fund has already been committed to three investments: Clarkson Eyecare, Eyemart Express and Enjoy Beer LLC, according to Fleischer. He said FFL has another possible deal in the healthcare space, and will make add-on acquisitions in optical retailing.

FFL also launched its $18 million FFL IV Co-Investment Fund earlier this year, according to PEI 's Research & Analytics division.

FFL, which manages over $4 billion of capital, has invested in more than 50 companies since its founding in 1997, according to PEI 's Research & Analytics division. The firm makes investments of between $50 million and $200 million in mid-market companies, and its portfolio companies have typically generated a profit growth of 19 percent, according to the statement.

FFL's third fund was raised under the firm's former name Friedman Fleischer & Lowe and closed on its $1.5 billion target in 2007. Limited partners in the fund include the James Irvine Foundation, Princeton University Investment Company and the University of California San Francisco Foundation, according to PEI 's Research and Analytics division.