Odyssey closes fourth fund on $1.5bn

The mid-market firm has doubled the size of it predecessor fund and exceeded its target by $500m.

Odyssey Investment Partners has closed its fourth fund on $1.5 billion, beating its original target of $1 billion.

Odyssey, based in New York and Los Angeles, will invest for control and management buyouts of mid-market companies mostly in the US.

“Substantially” all the investors from the third fund have returned for the fourth fund, “as well as several well-established institutional investors new to Odyssey”, the firm said in a statement. Limited partners in the fund include the Los Angeles Fire & Police Pension System, the San Francisco Employees' Retirement System, Allied Capital, the Montana Board of Investments and the State Universities Retirement System of Illinois.

Credit Suisse served as the placement agent for the fund.

Odyssey Investment Partners Fund III closed on $750 million in 2005 and has several realised investments, including the $1.2 billion sale of personal protection products maker Norcross Safety Products to Honeywell International, which the firm acquired for $495 million. Odyssey also exited construction and industrial equipment rental company Neff Corporation, which it bought in 2005 in a $510 million deal, using $241 million in equity. Norwest Equity Partners acquired Neff in 2007 for $900 million.

Odyssey has more than $2 billion in capital under management and focuses on sectors like aerospace, healthcare services, general industry, energy, packaging, safety products and supply chain management. The firm typically invests in companies with EBITDA in the range of $20 million to $80 million.