Mid-market private equity firm LLR Partners has closed its third fund on $800 million (€510 million), topping its initial target by roughly $200 million.
The Philadelphia-based firm launched the fund in October of 2007, and did not use a placement agent for capital raising. LLR III has more than doubled its predecessor, which closed on $360 million in 2005.
LLR will focus the fund on equity investments ranging from $10 million to $75 million in a broad range of mid-market sectors with an emphasis on health care, business services, information technology and financial services.
The firm typically takes majority or minority positions in portfolio companies through buyouts, recapitalisations and growth investments.
In March, the firm led a consortium including MPM Capital to invest $145 million in specialty pharmaceutical company EKR Therapeutics. Co-founded in 1999 by partners Seth Lehr, Ira Lubert and Howard Ross, the firm now manages $1.4 billion in assets.
LLR’s fund close comes as middle-market deal activity is markedly lower than last year. However, limited partners continue to show a strong appetite for middle market funds, as many institutional investors become increasingly cautious towards the mega-buyout space.