Hispania completes first close on fund

The mid-market private equity investor plans to raise as much as $200m for its second fund for investments in Hispanic-oriented businesses.

Chicago-based Hispania Capital Partners has completed the first close of its second fund, Hispania Private Equity II, on $105 million as it eyes a final target of between $150 million and $200 million.

Investments from the fund, which the firm launched last October, will follow Hispania’s traditional strategy of focusing on lower mid-market companies that provide goods and services to the Hispanic market in the US and Puerto Rico. The fund will invest up to $20 million in companies in target sectors such as business services, consumer and retail, financial services, manufacturing and healthcare, with annual revenues in excess of $10 million.

Returning investors to Hispania’s newest fund include Verizon’s Pension Fund and the Public School Teachers’ Pension and Retirement Fund of Chicago. New investors include Credit Suisse’s Customized Fund Investment Group, Fairview Capital Partners and Centinela Capital Partners.

Hispania has over $200 million in capital under management, and since 2003 has invested in seven platform companies and 10 add-on acquisitions, including market research firm Eastern Research Services, restaurant operator Master Restaurant Developers and hair care products provider Samy Companies.