Mill City Capital, the investment firm led by four former Goldner Hawn Johnson & Morrison executives, is targeting $200 million for its second fund, according to a document filed with the US Securities and Exchange Commission.
Mill City declined to comment.
The firm’s debut fund, a 2010 vintage, closed on $85 million, just shy of its $100 million target, according to Private Equity International’s Research and Analytics division. The buyout fund received commitments from local benefit society, Thrivent Financial for Lutherans and the Pohlad Family Companies.
Mill City invests in companies headquartered in the Midwest, focusing mostly on companies in Minnesota, Wisconsin, Iowa, North Dakota and South Dakota, according to the firm’s website.
Mill City: private equity named
These companies are usually in the industrial services, transportation and distribution, agribusiness or restaurant and retail sectors. Mill City’s portfolio includes Wholesale Produce Supply Company — a Minneapolis-based distributor the firm acquired in November 2011; and Milwaukee, Wisconsin-based Renaissance Power Systems, a holding company Mill City formed after it acquired Renaissance in January 2012, according to the website.
The firm seeks established and profitable companies with enterprise values between $50 million and $150 million. Its investments are usually between $10 million and $30 million, according to the website.
Mill City was founded by 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, who also came from GHJ&M, according to the website.
Mill City is a name referring to historical Minneapolis, when the city was known as the flour milling capital of the world from 1880 to 1930.