Harvest Partners, the US private equity firm based in New York, has closed its fourth investment fund ahead of target at $558m. The fund, Harvest Partners IV, will be invested in management buyouts and growth financings of profitable domestic and multinational middle-market companies in the US and Europe.
The original target for the fund had been set at $500m, with Deutsche Beteiligungs AG (DBAG) the fund’s largest investor. Other institutions committing to the fund included BancBoston Capital, General Electric Capital, Liberty Mutual Life Insurance, National City Capital and New York Life Capital Partners enabled the firm to surpass the original target.
Harvest Partners’ links with DBAG date beyond the latest investment in Harvest Partners IV. The two companies have a joint venture agreement specialising in US and multinational buyouts and growth financing. DBAG also contributed around 13 per cent to the firm’s previous fund, the 1997 Harvest Partners III private equity fund which closed at $362m.
Harvest Partners, which doesn’t have a European office network, uses its strategic partnership with DBAG as a platform for targetting European investments.
In April 2002 the fund made its first investment from Harvest Partners IV, leading the $436m public-to-private acquisition of Associated Materials, a manufacturer and supplier of vinyl windows, siding and other exterior building products.
Approximately 50 per cent of Harvest’s specialty services, distribution, and manufacturing acquisitions have been multinational, although the firm focuses primarily on acquisitions in the US and Europe.
Credit Suisse First Boston was placement agent for the fund. Simpson Thacher & Bartlett was legal adviser to Harvest Partners.