Swander races to $510m final close within five months

The lower mid-market firm closed beyond its $400m target, thanks to its returning LPs.

Lower mid-market firm Swander Pace Capital has closed its sixth fund, SPC Partners VI, on $510 million, surpassing its $400 million target.

The fund began raising capital in mid-April and received commitments “almost exclusively” from existing limited partners, the firm said in a statement.

According to an SEC filing from 10 August, SPC Partners VI received its first commitment on 30 June and had 39 investors. It held a first close on $450 million in June and final commitments came in mid-August, the firm said.

This latest fund will follow San Francisco-based Swander’s strategy of focusing on family-run mid-market consumer products companies with up to $400 million in revenue. It is led by managing directors Andrew Richards, Mark Poff, Mo Stout, Corby Reese, Rob DesMarais, and Heather Smith Thorne.

In the statement, Richards cited an “explosion in demand” in consumer categories such as natural and organic products, health and wellness, and pet products as reason to stay in that sector.

The previous fund, SPC Partners V, closed on $350 million in 2013. LPs in that fund include the School Employees’ Retirement System of Ohio, Fifth Street Asset Management, and Triangle Capital Corporation, according to PEI data.

An earlier fund, SPC Partners III, which closed on $331 million in 2003, was generating a 14.6 percent net internal rate of return as of 31 March 2013, according to latest available data from The Regents of the University of California.

Founded in 1996, Swander has cumulative equity commitments of about $1.8 billion. Its recent acquisitions in the consumer sector include California-based supplement formula manufacturer Captek Softgel International, North Dakota-based supplements provider Swanson Health Products, and Ontario-based Voortman Cookies.