ICV raises $400m for Fund III

The New York-based lower mid-market firm raised its largest fund to date and reached its target.

ICV Partners has closed its Fund III on $400 million, according to a statement.

Fund III will invest following the same strategy as ICV’s prior funds, making control investments in businesses with between $25 million and $250 million in revenue. Current investments include Las Vegas-based Marshall Retail Group and New York-based Cargo Airport Services, according to the firm’s website.

Limited partners in the fund include the Illinois Municipal Retirement Fund, the Teacher Retirement System of Texas and the New York State Common Retirement Fund, according to Private Equity International’s Research and Analytics division.

The majority of investors in Fund III are existing relationships from the firm’s initial fund, but the fund also received commitments from new domestic family offices, corporate and public pension plans.

ICV engaged MVision as a placement agent to fundraise for Fund III, according to the statement.

Fund II closed on $313 million in 2006, surpassing its $200 million target, according to PEI data. LPs in the fund include Bank of America Equity Partners, the Church Pension Group and the California Public Employees’ Retirement System.

ICV was founded in 1998 as Inner City Ventures, and is backed by two institutional co-sponsors, American Securities and the Initiative for a Competitive Inner City, which provide deal flow, institutional expertise and back-office support resources.