Fenway Partners Inc., a New York-based private equity firm, has launched its first private equity fund with commitments from eight investors, including the pensions funds of AT&T Corp., NYNEX Corp. and Amoco Corp.
Fenway Partners Capital Fund L.P. recently held its first closing on $190 million and is targeting a second closing in the second half of 1995, with commitments totaling $300 million to $450 million, said Peter Lamm, a principal.
The fund will buy controlling stakes in middle-market companies with revenues between $75 million and $500 million in transactions ranging in value from $75 million to $300 million.
The 2-year-old firm was founded by Richard Dresdale, a former principal at Clayton, Dubilier & Rice Inc., New York, and Mr. Lamm and Andrea Geisser, former partners of Butler Capital, New York. Their investment approach is similar to Clayton Dubilier's investment in "corporate orphans," seeking underperforming divisions of large companies and other corporate divestitures, as well as family-owned firms, said Mr. Lamm.
The investments likely will revolve around industries where the firm's principals have experience, such as basic apparel and food processing and distribution, said Mr. Dresdale. Health care companies also are a possibility, but the fund probably will avoid finance and banking companies, he said.
The fund already has targeted one potential first acquisition, a family owned, private-label food company, said Mr. Lamm.