Lower middle-market private equity firm MPE Partners has closed its oversubscribed second fund, MPE Partners II, at the hard cap of USD250 million.
The firm launched fundraising in April 2016 and did not use a placement agent.
"More than 30 investors committed to Fund II, including global asset management firms, insurance companies, family offices, foundations, and high net worth individuals," says Joe Machado, partner at MPE.
MPE has invested in companies such as dlhBOWLES, a designer and manufacturer of engineered plastics and fluid flow solutions for the automotive, consumer, and industrial markets; Trachte, a manufacturer of pre-assembled control buildings; B&E Group, a manufacturer of complex, precision machined aerospace and defence components and provider of overhaul and repair services for commercial aviation; Polytek, a manufacturer of specialty chemicals for industrial and consumer applications; and United Pipe & Steel, an independent master distributor of steel pipe, copper tubing, plastic pipe, electrical conduit, and related products.
MPE expects to invest MPE Partners II in similar industrial manufacturing and services companies.
Karen Tuleta, partner at MPE, says: "We continue to find great investment opportunities through our extensive network of relationships who value our experienced team, focused investment strategy, and proven approach to post-closing value creation."
Morgenthaler Private Equity invests in lower middle market leveraged buyouts, recapitalisations, and build-ups in two sectors: high-value manufacturing and industrial services.
MPE concentrates on entrepreneur- and family-owned businesses and corporate divestitures with a sustainable competitive advantage, and when combined with strong management, enable a company to achieve substantial improvements in growth rates, profitability, and shareholder value. MPE targets North American companies with transaction values of up to USD150 million as platform investments and seeks strategic add-on acquisitions globally.