Palladium Equity Partners has acquired a stake in ZelnickMedia-backed Cannella, an “infomercial” company, from its third fund, which the firm re-opened in mid-2008 to accept additional capital commitments from limited partners.
Terms of the deal were not disclosed. Palladium invested alongside ZM Capital and Veronis Suhler Stevenson.
Palladium has more than $1 billion of committed equity capital since its establishment in 1997. The firm closed its third fund 2006 on $520 million and reopened fundraising to existing limited partners at the end of 2007. Palladium collected an additional $255 million and closed the fund in mid-2008, according to a person with knowledge of the situation.
The firm has made several investments from the fund, including two investments in financial institutions – Heritage Bank and Mission Community Bank, and taking minority stakes in Carpio Solutions, a provider of business system solutions. The firm also acquired Gilsonite products maker American Gilsonite Company.
KPS Equity Partners also recently reopened marketing to existing LPs in its third fund, which closed on $1.2 billion in 2007. The firm is looking to raise an additional $800 million for the fund for new investments.