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Sentinel targets $1.1bn for Fund V

The lower mid-market firm continues to ramp up the target amount for its follow on funds, having raised $319m in 2005 and $765m in 2008.

New York-based Sentinel Capital Partners has launched its Fund V with a $1.1 billion target, according to documents filed with the US Securities and Exchange Commission.

Sentinel declined to comment.  

Fund V represents the first time Sentinel has set a fund target of $1 billion or more, and continues the lower mid-market firm’s theme 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.

Credit Suisse, which acted as placement agent for Sentinel’s Fund IV, will receive sales compensation for Fund V, according to SEC documents. Fund V received a $10 million commitment Wednesday from the Pennsylvania State Employees' Retirement System, according to pension documents.

Sentinel invested its Fund IV using essentially the same strategy as its Fund III, but in order to help manage the significantly larger fund, the firm added follow-on investing to its strategy. 

“If we were to do exactly the same strategy as Fund III in Fund IV, we would have to invest in 30 companies, and we don’t have the ability to find 30 new platform deals in a five-year span with the team we have,” Sentinel co-founder David Lobel told Private Equity International in a previous interview. 

The launch of Sentinel’s Fund V follows a busy year on the exit front in 2012 for the firm, which sold six portfolio companies including Pizza Hut franchisee Southern California Pizza Company, massage therapy and facial treatment business Massage Envy and electrical heating company Chromalox. 

Sentinel is a lower mid-market firm that invests in management buyouts, corporate divestitures, family businesses, go-privates and operational turnarounds with existing management in the US and Canada. The firm’s team has experience in the aerospace and defense, business services, consumer products and services, distribution, food, restaurant, franchising, healthcare and industrial industries.