Achieving its largest fundraising ever, ICV Partners has raised $585 million in committed capital for its fourth fund. The New York City-based private equity investment firm will use the cash for ICV Partners IV, L.P. (Fund IV). It will allow the firm to keep investing and acquiring businesses operating in such industries as manufacturing, consumer goods and services, food and beverage, commercial services and healthcare.
Money in the Fund IV tops the previous highest amount of $400 million accumulated in the firm’s last fund, Fund III, raised in 2014. ICV largely invests in middle-market companies with revenues of $25 million to $250 million and EBITDA between $5 million and $30 million.
In a news release, company officials announced that ICV’s Fund IV exceeded the firm’s target and represents an approximately 50% increase in capital commitments compared to Fund III.
Investors in the current fund include a diverse group of leading endowments, foundations, state pension plans, family offices, gatekeepers, insurance companies and fund of funds.
ICV now has over $1.3 billion of assets under management with the closing. The company was No. 7 on the BE Private Equity Firms list in 2017 with capital under management of $840 million. ICV Partners President Willie Woods stated, “We are grateful for the immense support we’ve had from existing Limited Partners, many of whom have increased their commitment in Fund IV. We are excited by the enthusiasm for our 20-year, value-oriented approach to the lower middle market and we look forward to building on our success in Fund IV.”
Fund IV will continue to apply the investment strategy ICV has implemented since its formation two decades ago, pursuing differentiated sourcing channels and partnering with leading, lower-middle market companies to identify and unlock value potential.
An investment stemming from Fund IV includes ICV Partners’ acquisition this year of Franklin, Tennessee-based Outpatient Imaging Affiliates L.L.C., a leading provider of outpatient radiology services in partnership with leading health systems across the country.
Outpatient Imaging will join a number of firms as part of ICV’s portfolio of companies and partnerships. The firm’s partnership investments include Coverall, a franchisor of commercial cleaning services; SirsiDynix, which produces software and related services for libraries; and, OneTouchPoint, a commercial printer and document services company.
ICV Partners has invested more than $235 million in 19 companies, according to its website.