PNC Equity Partners has launched its $300 million PNC Equity Partners II middle-market buyout fund to focus on transactions of $20 million to $125 million. This is the third fund for the PNC Bank affiliate. Its first, PNC Equity Partners I, also a private equity middle-market buyout vehicle, closed at $300 million in August 2001. Its second, PNC Mezzanine Partners III, which provides subordinated debt and equity to middle-market companies to fund acquisitions, buyouts, recapitalizations and growth, closed at $350 million in November 2005.
"It's fairly standard in the private equity industry to periodically refresh the capital pool," said David Hillman, president, explaining the timing of the launch. "A lot of private equity funds look at the smaller end of the middle-market, but we have more experience than most of our competition in this area."
The new fund invests in niche manufacturing companies, including Advanced Disposal Services, a solid waste collection service; F.B. Leopold, a filtration system supplier for municipal water, and Griffith Energy, a provider of propane, heating oil and power fuels.
Hillman, one of the managers of their most recent fund, founded the private equity arm of PNC 23 years ago. Peter Del Presto and Jack Glover, both partners, also manage the new fund. The fund requires a $5 million investment minimum. The management fee is 2% and performance fee is 20%.