Pamlico closes fourth fund on $910m

Existing investors represented about 80% of the new fund, which was raised in about four months.

Lower mid-market firm Pamlico Capital has closed its latest fund, Pamlico Capital IV, on its $910 million hard-cap, the firm said on Monday.

The fund, which launched at the end of summer, had a target of $750 million. The GP commitment represented about 4 percent of the final amount.

Pamlico's fundraising experience this time differed greatly from that of his third fund. In 2013, Pamlico Capital III closed on $650 million, above its $500 million target, after more than a year of fundraising. This was the first fund Charlotte, North Carolina-based Pamlico raised since spinning out of Wells Fargo in 2010. 

Pamlico Capital II closed on $1.1 billion in 2007 when the firm was still part of Wachovia, which provided about 75 percent of the capital and was later purchased by Wells Fargo.

“With Fund III, we had a lot of relationships to establish to replace our 75 percent LP, and with a fundraising market only beginning to improve, it led to a longer fundraising,” Eric Eubank, a partner at Pamlico, told Private Equity International.

He added that with the latest fund, the vast majority of existing investors re-upped and represented more than 80 percent of the capital raised. Investors Pamlico had met with in the year leading up to the fundraising provided the remainder of the capital.

As a result, what Pamlico initially thought would be a first close ended up also being the final close of the fund.

Existing investors in the firm's third fund included AlpInvest Partners, Constitution Capital Partners and HarbourVest Partners.

Pamlico, which has $2.5 billion in assets under management, will continue its strategy of investing in growth companies in the business and technology services, communications and healthcare sectors in North America.  It will seek equity investments between $20 million and $100 million in companies with total enterprise values of between $50 million and $200 million.

Although Pamlico Capital III was a smaller fund, it will end up being invested fasted than anticipated, said Eubank. “This fund is larger, but we set the hard cap based on our capacity.”

The third fund is currently about 80 percent invested and Eubank anticipates the firm will make two additional platform investments in the first quarter, with the latest fund beginning to invest in the second quarter.

Pamlico has 29 employees, including eight partners, two principals and five vice presidents. It recently hired Zack Tillitski as operating partner and Christiane Felts – from Carlyle – as vice president.

UBS Securities acted as the placement agent for Pamlico, which doesn't have an investor relation team.