Norwest Equity closes $800m fund

The Minneapolis firm’s eighth middle-market vehicle launches shortly after the May close of Norwest’s $400 million mezzanine fund.

Minneapolis-based Norwest Equity Partners has announced the close of its eighth fund on $800 million (€657 million).

The middle-market private equity firm will continue to make investments of $20 million to $80 million in companies operating in the manufacturing, distribution, healthcare services, business services and consumer products industry sectors.

The closing of Norwest Fund VIII follows on the heels of the launch of the firm’s second mezzanine fund, which closed on $400 million (€657 million) this May. Norwest’s previous buyout fund closed in 1999 on $800 million as well.

Since Norwest’s inception in 1961 as Norwest Growth Fund, Wells Fargo has been the firm’s primary source of capital. The firm is run by managing general partners Timothy DeVries and John Lindahl and has managed more than $2.3 billion in capital over the last 15 years.

In June, Norwest’s portfolio company Life Time Fitness completed an initial public offering that raised $210 million. Last November, former Norwest general partner Charles Lannin left the firm to co-found Minneapolis-based Stone Arch Capital, a similar middle market buyout firm.