Frontenac Closes $250M P.E. Fund

Jul 10 2014 | 12:15pm ET

Chicago-based private equity firm Frontenac Company has closed its 10th p.e. fund at its $250 million target.

Frontenac X Private Capital has already completed two investments—in Portfolio General Management, a provider of outsourced financial services to automobile dealerships, and Ohio Transmission Corporations, an industrial distributor—and returned more than 50% of the fund’s invested capital through dividend recapitalizations at both companies.

Frontenac focuses on investing in lower-middle market buyout transactions in the business services, industrial, food and healthcare sectors. The firm works with owners of mid-sized businesses, almost always families or founders, as they address complex transition issues of liquidity, management enhancement, and growth planning.

“We appreciate the support we received from our existing family and institutional limited partners, and are also pleased with the relationships we have developed with an outstanding group of new investors who support our well-defined investment approach and our focus on growth and operational enhancements,” said Paul Carbery, a managing partner at Frontenac Company. “We added several new large institutions and family offices to our investor group.”

Frontenac has a seven-member senior investment team, including the recently promoted Ronald Kuehl and Michael Langdon.

M2O Private Fund Advisors advised on the formation and placement of the fund, and Winston and Strawn, served as legal counsel.

Frontenac has completed over 25 buyout transactions, and nearly 60 add-on acquisitions, since 2000.

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