Indianapolis-based private equity firm Centerfield Capital Partners has completed fundraising for a $400 million investment fund, the fifth and largest to date in the company’s 24-year history .
The fund, which closed this month, was oversubscribed, meaning Centerfield was able to attract more than the $350 million it was targeting for the fund. Funding came from a mix of existing investors and new investors.
Centerfield was able to raise the funds in 12 months, about half the time it took the company to raise capital from its previous funds, senior partner Michael Miller said.
Miller said the speed of funding was due in part to Centerfield’s longstanding relationship with many of its investors.
“It gives a very good momentum, when investors invest in one fund after another,” he said.
Centerfield has 11 employees, with Faraz Abbasi as managing partner, Miller and Mark Hollis as senior partners and Jill Margetts as partner. The company is working to hire two additional employees, which will bring its total workforce to 13.
Centerfield’s investors include individuals, insurance companies, foundations, commercial banks and family offices, entities created to manage the assets of a wealthy family.
Centerfield invests in U.S. companies with annual revenues between $15 million and $100 million, with an emphasis on those in business services, consumer products, healthcare, manufacturing and value-added distribution. About half of Centerfield’s investments are in companies based in the Midwest, and to date the company has invested in 80 different portfolio companies, typically holding each investment for about five years before exiting.
The company’s current portfolio includes several Indiana-based companies: Indianapolis-based product distributor FreshEdge, Indianapolis-based P1 Dental Partners and Westfield-based manufacturer DuraMark Technologies.
Centerfield is currently evaluating potential investment targets, but has not yet made any investments from Fund V.
Including Fund V, Centerfield has raised a total of $1.1 billion since the company was founded in 1998. Its Fund 1 raised $60 million, Fund II raised $116 million, Fund III raised $171 million and Fund IV raised $335 million.
As it has done with previous funds, Centerfield partnered with the U.S. Small Business Administration’s Small Business Investment Co. program to raise capital for Fund V. Centerfield raised $225 million and tapped into the SBIC for the remaining $175 million.
In the SBIC program, the SBA lends money to entities such as Centerfield, which in turn makes the money available to small businesses in the form of debt or equity financing. The SBA gets its money back through program fees plus the interest Centerfield pays on the loans.