Parallax Capital Partners has closed its debut fund on $115 million, just shy of its $120 million target, highlighting the difficult fundraising environment for first time funds.
The Laguna Hills, California-based firm held a first close for the fund on $80 million last year. Parallax was founded in 1999 and has since then invested in lower mid-market software and technology companies on a deal-by-deal basis. The firm focuses on complex transactions or turnarounds, including leveraged buy-outs, recapitalisations, corporate divestitures, spin-offs, and build-ups.
Atlantic Pacific Capital acted as placement agent on the fund, which attracted commitments from foundations, endowments, pensions, and consultants.
Neither Parallax nor Atlantic Pacific were available for comment on the fund close.
Parallax recently partnered with StepStone Group to acquire DivX, a high quality video streaming provider for $75 million from Rovi Corporation. That transaction also included DivX subsidiary MainConcept.
Parallax was founded by former Gores Group executive James Hale, and had generated a cumulative rate of return of 9x on its individual investments as of March 2013, a source with knowledge of the situation told Private Equity International in a previous interview.