Mill City holds first close on $87m for second fund

Minnesota-based Mill City Capital is aiming for $200 million for its second fund

Minnesota-based Mill City Capital is making progress raising its second fund. The firm has raised $87 million for Mill City Fund II, according to SEC filings.

The fund has a $200 million target and first came to market in August of last year.

The firm declined to comment on fundraising.

Mill City is led by four former Goldner Hawn Johnson & Morrison executives – Darren Acheson and Michael Israel, who both began their careers at the investment bank Piper Jaffray, Lisa Kro who spent time at Goldner Hawn Johnson & Morrison and KPMG, and Gary Obermiller.

The firm invests in companies headquartered in the Midwest, focusing mostly on companies in Minnesota, Wisconsin, Iowa, North Dakota and South Dakota, according to its website. Typical investment size is $10 -$30 million.

Mill City’s debut fund closed on $85 million in 2010, just shy of its $100 million target according to Private Equity International’s research and analytics division. Known investors in that fund include Thrivent Financial for Lutherans, and the Pohlad Family Companies.