Roark Capital Group is on track to hit its $1.5 billion hard-cap on its third fund only a few months after holding a first close.
Roark, which was pre-marketing the fund late last year, had collected about $462 million as of April, according to a filing with the US Securities and Exchange Commission.
The firm closed its second fund in 2008 on about $1 billion, and raised its debut fund in 2005, collecting about $413 million. Performance on those funds has been solid, according to a limited partner with the fund.
Fund I is almost first quartile, generating a 1.7x multiple and a 13 percent internal rate of return. Fund II is first quartile, producing a 1.5x multiple and a 23 percent IRR, according to the LP.
Roark’s second fund especially, which was raised and hit the market several months before the collapse of Lehman Brothers and the beginning of the global financial crisis, is a good indication of the skills of the investment team, the LP said.
“They’re just crushing it,” the LP said.
Roark focuses on consumer and retail and services sectors, and looks for businesses with franchise opportunities. Last year, Roark paid $130 million cash to buy the Arby’s fast food chain from Wendy’s/Arby’s Group. As part of the deal, valued at $430 million, Roark assumed $190 million of Arby’s debt.
Roark’s portfolio includes other franchise restaurants, including food court staples like pretzel-maker Auntie Anne’s, Seattle’s Best Coffee, Moe’s Southwest Grill, McAlistar’s Deli, Carvel Ice Cream and Schlotzky’s sandwich chain.