Industrial Opportunity Partners Raises $450M For Third Fund

Jul 11 2017 | 10:45pm ET

Private equity firm Industrial Opportunity Partners has raised $450 million in capital commitments for its third buyout fund, hitting its hard cap after a three-month fundraising process. 

The new fund, named Industrial Opportunity Partners III, L.P., exceeded the company’s original target of $400 million, according to a statement. Investors reportedly include university endowments, foundations, insurance companies, pension plans, and funds-of-funds.

Like its predecessors, Fund III will invest up to $50 million into opportunities in construction, automotive and industrial businesses with between $30 million and $350 million in revenue. The company’s inaugural fund raised $185 million in 2007 and completed 11 platform investments, seven add-on acquisitions, and seven realizations. Fund II, meanwhile, raised $275 million 2012 and has completed 11 platform investments, two add-on acquisitions and two realizations. 

Park Hill Group and Sidley Austin served as placement agent and legal counsel, respectively, to the new fund, the company added.

Founded in 2005, Industrial Opportunity Partners focuses on acquiring and overseeing middle-market manufacturing and value added distribution businesses primarily in North America. The firm has raised $910 million of committed capital since its inception and is differentiated by its full-time board of operating principals, each with over 25 years of experience, who guide and assist the management teams of portfolio companies. 

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