Los Angeles-based Hancock Park Associates has launched its third fund, seeking $250 million (€208 million) for Hancock Park Capital III LP. The firm has already closed on roughly half of that, and expects to hold a final close by the end of the year. A source close to the fundraising told PEO that “the balance is fairly well spoken for”.
The $250 million target will move Hancock Park up a notch in terms of capital under commitment. The firm’s previous fund, Hancock Park Capital II had held a final close on $108 million of commitments in July of 2003.
The firm was founded in 1986 by Brentwood Associates veteran Michael Fourticq Sr.
Hancock Park is an operations-focused firm that tends to shy away from the distressed label. The firm’s Web site indicates that it invests in “fundamentally sound” businesses with revenues of between $50 million and $100 million, and will write equity cheques ranging from $5 million to $10 million in size.
However, the firm will occasionally target businesses that have run into trouble. Hancock Park acquired former FAO Inc. subsidiary Right Start out of bankruptcy protection and did the same for its Fitness Holdings portfolio company, a specialty retailer of high-end home fitness equipment.
Other companies in the Hancock Park portfolio include casual dining restaurants group Gordon Biersch, special-event equipment rental outfit Classic Party Rentals, and upholstered furniture manufacturer Stanton International.
Hancock Park is seeking a minimum investment of $2 million for the new fund, and has not hired a placement agent to market the vehicle.
The firm has already completed one investment out of the fund, acquiring Resco Products, a North American supplier of refractories, in September.