Milestone closes Fund III on $230m

The Pennsylvania-based private equity firm has exceeded its $200m target, having garnered commitments from returning investors as well as new institutional limited partners.

Mid-market private equity firm Milestone Partners has closed its third fund at $230 million, exceeding its original $200 million target, within a year of marketing.

Milestone Partners III has received investment from several undisclosed new investors, as well as “nearly all” the investors who participated in Milestone Partners II, which closed in April 2005 on $120 million. Limited partners in Fund II included the New York State Teachers’ Retirement System, Pension Danmark, listed fund of funds SVG Capital and the Pennsylvania Public School Employees Retirement System.

The firm has already completed four acquisitions from Fund III, including Fatz Café, a restaurant chain; Safemark Systems, a domestic safe provider; Global Connection, a marketer of prepaid phone services; and Black Letter Discovery, a litigation support platform.

Milestone typically invests in North American mid-market businesses with enterprise values between $15 million and $100 million. The firm is managed by founding partners Scott Warren and Robert Levine and partners John Shoemaker and Brooke Hayes.