Marlin in record $650m fundraise

The turnaround specialist has once again raised a fund in less than three months, surpassing its $450m target and more than doubling its predecessor.

Southern California-based Marlin Equity Partners has held a $650 million first and final close on its third turnaround fund, pushing its capital under management past the $1 billion mark.

The Gores Group spin-out raised the capital in less than three months, just as it did for its predecessor fund, which raised about $300 million in late 2007. Both funds were three times oversubscribed and placed by Probitas Partners.

Probitas partner Mac Hofeditz attributed the “unbelievably strong demand” for Fund III to the firm’s “investment team, its differentiated strategy, and its strong returns”.

Marlin managing partner David McGovern said the firm was “extremely grateful for the strong support we received from such a prominent group of returning and new institutional limited partners”. Limited partners were not disclosed, however Marlin said the fund attracted commitments from endowments and foundations, public and private sector pension funds, family offices, financial institutions and insurance companies.

Kirkland & Ellis advised on fund formation.

Marlin typically focuses on businesses with revenues ranging from $20 million to $1 billion, in sectors including technology, healthcare, consumer, services and manufacturing. Its most recent deal was an add-on acquisition in October for US cash machine company FCTI. In July, Marlin bought Tyco Electronics’ battery division for a reported $25 million, renaming it Palladium Energy.