Top performer Pegasus collects $186m

The firm’s prior fund, Pegasus Partners IV, has been a top performer for the New York City Teachers’ Retirement System, generating a 52.7% IRR. The firm is raising its fifth fund.

Pegasus Capital Partners, which has the top performing fund in New York City Teachers Retirement Fund’s private equity portfolio, has collected at least $186 million for its fifth fund, according to US Securities and Exchange Commission documents.

The target for Fund V could not be determined by press time. Pegasus did not return requests for comment.

The firm typically focuses on mid-market companies in a variety of sectors, including sustainable business solutions, security services, health products and services as well as alternative building materials.

New York City Teachers’ pension system has re-upped with the fund, as has the City Fire Department pension, for commitments totaling $65 million.

Pegasus Partners IV, which closed on $750 million in 2007, was New York City Teachers’ highest performing fund through 2010, generating a 52.7 percent internal rate of return and 2.5x return multiple since inception as of 31 December, 2010, according to pension documents.

The solid performance was driven in part by the fund’s investment in Molycorp Minerals, a Colorado-based rare earth mineral mining company. The company was being held at 14.9x its cost as of 31 December, according to documents, the best performing portfolio company in any of Teachers’ private equity holdings. 

Pegasus was founded in 1996 by former Apollo Advisors founder Craig Cogut. The firm manages approximately $2 billion in assets and has completed more than 80 investments since its inception, according to its web site.