SFW closes debut fund on $300m

The mid-market private equity firm founded in 2006 has closed it first fund but has yet to make its first investment.

SFW Capital Partners has closed its first fund with more than $300 million (€195 million) in commitments for investment in mid-market healthcare and industrial companies.

The Rye, New York-based private equity firm was founded in 2006 by Thomas Salice, Roger Freeman and Norm Wells of New York-based private equity firm AEA Investments. Joining them as founding partners were Parthenon Capital’s Casey Lynch and former Merrill Lynch financial sponsors group head David Webb.

SFW has yet to make its first investment but intends to invest $15 million to $75 million of equity in established companies with a history of profitability.

The firm invests in select segments of the healthcare and industrial industries, focussing on “measurement and diagnostics businesses and highly engineered industrial products”, according to the company website.

SFW counts endowments, foundations, family offices and financial institutions among its limited partners.

“CEOs, senior manager and industry executives that SFW partners have worked with in the past are collectively one of the largest investors in the fund,” the firm said in a statement.

Several investors have co-investment and debt programs which may be leveraged for larger investments or add-on acquisitions, the firm said.