Miami-based private equity firm Pine Tree Equity Partners has closed its latest small cap fund in just 90 days after easily reaching its $100m target.
Pine Tree Equity III was oversubscribed according to the firm, which has almost doubled its capital base to nearly $200m through the fundraise.
AltAssets revealed in February that the firm had launched the vehicle and was asking for at least $100,000 from each LP.
Although the filing revealed Pine Tree expected to complete the fundraise within a year, there was no indication the firm would gather the capital in such a rapid fashion.
The firm is led by experienced private equity investor Jeff Settembrino, who was previously a principal at Trivest Partners, the oldest private equity firm in the south east US.
Before that was with private investment firm Fir Tree Partners, having started his career as an investment banker with Bear Stearns.
Settembrino told AltAssets that the firm halted its marketing process and closed the fund quickly in the best interests of its existing investors, rather than upsizing at the risk of changing its business strategy.
He said, “We are extremely thankful to have received great support from existing investors and significant demand from new investors.
“Although we were oversubscribed, we wanted to keep our third fund at $100m in order to remain dedicated to the small capitalization space, where our committed capital and proven experience has helped transform entrepreneurial success stories into institutional platforms positioned for continued growth.”
That strategy will see Pine Tree continue to target companies with revenues of between $10m and $50m, or EBITDA between $2m and $6m, in partnership with existing management.
The firm aims to invest up to $7.5m of equity capital in companies within growing industries with predictable fundamentals, such as business and financial services, consumer products and niche manufacturing.
It has closed 21 deals since it was founded in January 2007.
Pine Tree made one platform investment, two bolt-ons and one recapitalisation last year according to its website.
In November it recapitalised Northwest Plan Services and bought Fast Fix Jewelry and Watch Repair, and completed bolt-ons for Hi-Tech Testing and Applied Consultants earlier in the year.
Its other portfolio companies comprise environmental and industrial maintenance company EnviroVac and accounts receivable financing business Federal National Payables.
Fellow small cap investor North Castle Partners began deploying capital from its fifth buyout fund last September after holding a $100m first close.
The firm used commitments from $250m-targeting NCP V to invest in Curves International, the world’s largest fitness club franchiser.
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