Minnesota-based Wayzata Investment Partners is planning to launch its third fund targeting $2.5 billion, according to a source with knowledge of the situation.
Wayzata makes distressed for control and special situations investments, primarily in the US.
The firm is expecting to hold a first close during the first quarter of 2012, the source said, and is still in the process of speaking with existing limited partners.
LPs in Wayzata’s second fund include the Los Angeles County Employees’ Retirement System, the Public Employees Retirement Association of New Mexico and the New Jersey Division of Investment, which committed $100 million to Wayzata Opportunities Fund II in 2007. The fund is generating a 1.7x gross return multiple, while Wayzata’s first opportunities fund has generated a 2x gross return multiple, according to the source. New Jersey committed $40 million to Fund I.
Park Hill Group, which placed Wayzata’s second fund, will act as placement agent for Fund III.
Wayzata Investment Partners was formed in May 2004 after a management buyout of the former CFSC Wayland Advisers, a subsidiary of Cargill, and has more than $5 billion of total assets under management.
The firm is led by managing partner Patrick Halloran, who oversees all Wayzata Funds and has managed the group since 1990. From 1986 to 1989, Mr. Halloran was a member of Dean Witter Reynolds’ Corporate Finance Department.