Nautic closes 8th fund on $900m hard-cap

The spinout firm from Fleetwood Bank has closed its Fund VIII after four months in the market.

Mid-market firm Nautic Partners has closed its eighth fund, Nautic Partners VIII, on its $900 million hard-cap after fundraising since October, the firm said.

Fund VIII launched with a target of $800 million, according to PEI’s Research & Analytics division. Limited partners include Rhode Island State Treasury, which committed $20 million to the fund.

“In Nautic VIII, we intend to continue to emphasise our expertise in our three primary sector verticals: healthcare, industrial products, and outsourced services,” Nautic managing director Bernard Buonanno III said in a statement.
“We will also remain focused on our strategy of improving the value of our portfolio companies by enhancing the depth of our management teams, initiating targeted operating initiatives, and closing add-on acquisitions that are both strategically and financially accretive.”

Its predecessor, Nautic Partners VII, closed on $530 million in 2014, below its $600 million target, according to PEI Research. Its limited partners include the Fire and Police Pension Association of Colorado, which committed $10 million, the New York State Teachers’ Retirement System, which committed $100 million, the Rhode Island Treasury, which committed $20 million, the New York City Employees’ Retirement System, which committed $100 million and Guardian Life Insurance Company of America.

Nautic was originally founded as part of Fleet Bank in 1986 and spun out in 2000 with its fifth, and first independent, fund. Nautic VIII is the eighth private equity fund and fourth independent fund, the firm said.

Nautic seeks to make equity investments of between $25 million and $100 million.