Lower mid-market-focused firm Milestone Partners has closed its third fund on $230 million, exceeding its target of $200 million. Milestone Partners III saw nearly all of its predecessor fund’s investors make commitments, according to the firm, while new public pension funds, insurance companies and funds of funds also invested in the firm’s latest vehicle.
Milestone has completed four acquisitions through the new fund, including: Fatz Cafe, a casual dining restaurant chain; Safemark Systems, a provider of in-room hospitality safes; Global Connection, a marketer of prepaid wireline phone services; and Black Letter Discovery, the first acquisition by Callidus, a new litigation support consolidation platform sponsored by Milestone.
“Everyone at Milestone appreciates the confidence that both our pre-existing investors and our new investors have demonstrated in our firm, especially in a difficult fundraising environment,” says John Shoemaker of Milestone Partners. “We look forward to continuing our disciplined approach to investing in the new fund.”
Milestone invests in LBOs and recapitalisations of lower mid-market businesses. The firm typically acquires businesses in the $15 million to $100 million valuation range, with stable cash flow and expansion potential either through internal growth or acquisitions.
D.C.