Roark closes fourth fund on $2.5 billion

The fund beat its initial $2 billion target

Atlanta-based Roark Capital Group has closed its Roark Capital Partners IV vehicle on $2.5 billion, beating the $2 billion target.

Roark focuses on consumer, business and environmental services companies with a concentration on franchise systems. The firm currently backs a handful of popular consumer concepts like Cinnabon, Arby’s and Auntie Anne’s.

Roark declined to comment on fundraising.

Known investors in Fund IV include the University of Michigan Board of Regents which committed $40 million in September 2014, and the Colorado Fire & Police Pension Association which committed $15 million in November 2014. The Washington State Investment Board also committed $200 million to the fund, and was an investor in Fund III.

Roark is currently investing out of its Roark Capital Partners III vehicle, a $1.5 billion fund raised in September 2012. That fund has a net IRR of 13.3 percent according to performance data from the Washington State Investment Board through June 30, 2014.

No investments have been made out of Fund IV.

Lazard Frères & Co. LLC acted as placement agent for the fund.