Sentinel closes Fund V on $1.3bn hard-cap

The lower mid-market firm closed its fifth fund after just four months in market.

New York-based Sentinel Capital Partners has held a first and final close for its Fund V on its $1.3 billion hard-cap.

Sentinel launched Fund V in March with a $1.1 billion target. The fund received a “strong show of support” from existing limited partners and attracted “several new” investors, Sentinel founder and managing partner David Lobel said in a statement. LPs in the fund include institutional investors from the US, Europe, Japan, China and Australia. 
Sentinel declined to comment.

Fund V will continue Sentinel’s strategy of investing in lower mid-market companies with up to $35 million of earnings before interest, tax, depreciation and amortisation. The firm has yet to deploy any capital from Fund V, according to a source familiar with the situation. 

Credit Suisse acted as placement agent for the fund. 

Fund V is the first Sentinel fund with a target of $1 billion or more and continues the firm’s strategy of significantly increasing the size of its follow-on vehicles. Sentinel’s previous three funds all raised more than double their predecessor funds, with its last two offerings collecting $319 million and $765 million in 2005 and 2008, respectively. The firm’s maiden fund collected $55 million in 1996. 

Sentinel had busy year on the exit front in 2012, selling six portfolio companies including Pizza Hut franchisee Southern California Pizza Company, massage therapy and facial treatment business Massage Envy and electrical heating company Chromalox. 

Led by Lobel and co-founder John McCormack, Sentinel invests in management buyouts, corporate divestitures, family businesses, go-privates and operational turnarounds with existing management in the US and Canada. The firm has experience in the aerospace and defense, business services, consumer products and services, distribution, food, restaurant, franchising, healthcare and industrial industries.