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Private Equity

Wellspring Capital, Peak Rock close $1 billion-plus private equity funds


Two private equity firms announced fund closings on Wednesday exceeding $1 billion.

Wellspring Capital Management announced the closing of generalist buyout fund Wellspring Capital Partners VI at its $1.42 billion hard cap, exceeding its $1.2 billion hard cap, a spokesman said in an email. Predecessor fund Wellspring Capital Partners V closed at $1.2 billion in 2010.

The fund will "acquire or invest in middle-market companies that are well-positioned to capitalize on change and can benefit from Wellspring's operating and financial expertise," said a news release from the private equity manager.

"Wellspring has the flexibility to complete transactions ranging from $100 million to as much as $1.5 billion in total value in a wide range of industries."

Also, Peak Rock Capital announced the closing of special situations funds Peak Rock Capital Fund II and Peak Rock Capital Credit Fund II at $1.3 billion combined, exceeding their combined fundraising target of $900 million and hitting their hard cap.

Peak Rock Capital Fund II will focus on middle-market companies "where Peak Rock can support management in driving rapid growth and profit improvement through operational and strategic changes," said a Peak Rock news release.

Peak Rock Capital Credit Fund II will target "non-control debt investments in middle-market companies including both primary and secondary credits," the release said.

The funds have already made multiple portfolio investments, including a control equity investment in Hasa Inc., a water treatment producer and distributor, a Peak Rock spokesman said in an email. He declined to disclose non-control debt investments.

The predecessor funds closed at their $700 million hard cap in 2013.

Investors in Wellspring Capital Partners VI include the $116.5 billion Washington State Investment Board, Olympia; $89.5 billion Minnesota State Board of Investment, St. Paul; $34.2 billion Connecticut Retirement Plans & Trust Funds, Hartford; and $18 billion Kansas Public Employees Retirement System, Topeka.

Investors in the Peak Rock Capital funds include the $195.6 billion Florida State Board of Administration, Tallahassee, and the $7.6 billion Alameda County Employees' Retirement Association, Oakland, Calif. The $221.7 billion California State Teachers' Retirement System, West Sacramento, invested in Peak Rock Capital Credit Fund II.