Palladium closes Fund IV above hard-cap

The firm's Fund IV launched in 2012 with an $800m target and $1bn hard-cap.

Palladium Equity Partners has closed its fourth fund on $1.14 billion, north of its $1 billion hard-cap, according to a statement.

Palladium launched Fund IV in 2012 with an $800 million target and held a first close that year on $200 million. The $1.14 billion includes a general partner commitment, the amount for which could not be determined at press time. Prior to the final close, Palladium’s limited partners agreed to increase the firm’s hard-cap to more than $1 billion. 

Palladium was unavailable for comment at press time. 

Palladium invests between $15 million and $75 million in lower-mid market companies that focus on the Hispanic market. Target businesses typically have earnings before interest, taxes, depreciation and amortisation of between $5 million and $25 million. The firm focuses on the business services, industrial, consumer, healthcare and media sectors, according to its website. 

Investors in Fund IV include the California State Teachers’ Retirement System, the Connecticut Retirement Plans and Trust Fund and the New York State Common Retirement Fund, according to Private Equity International’s Research and Analytics division. 

The Los Angeles County Employees Retirement System is also an LP in the fund, having committed $100 million earlier this year. 

Palladium’s Fund III closed on $775 million in 2005 and Fund II closed on $231 million in 2000. Fund III had netted an 18.2 percent internal rate of return and 1.9x investment multiple through September, according to the California Public Employees’ Retirement system. The firm has more than $2 billion of assets under management.