New York-based Snow Phipps Group has closed its second fund on $844 million, exceeding its $700 million target. The firm held a first close on $308 million last year, according to a filing with the US Securities and Exchange Commission.
Fund II, which was in market for approximately 18 months, is slightly larger than Snow Phipps’ debut vehicle, which closed on $620 million in 2007. Both funds have the same strategy of investing in small to mid-market businesses, primarily in North America, with enterprise values between $100 million and $500 million.
“We received strong support from our existing investors and also added many new relationships,” Snow Phipps chief executive officer Ian Snow said in a statement.
The firm was not available for comment at press time.
Fund II has already made two platform investments, acquiring apparel company Velvet and workforce solutions company ZeroChaos. The firm invested in eight companies from its debut fund, including Excel Mining Systems, Tasti D-Lite and Acentia, formerly ITSolutions.
Snow Phipps' strategy is based around its team of eight operating partners. In November, the firm hired ADP executive Campbell Langdon as an operating partner to focus primarily on investments in business services, a “core investment sector” for the firm, Snow said in November.
The firm was founded by Snow and Ogden Phipps, of the Phipps family group, in association with Guggenheim Partners, in 2005.