Mangrove Equity Partners raised $175 million for Mangrove Investors III LP.
It’s the third private equity fund for the Tampa private equity firm and attracted a lot of investor interest.
“The fundraising for MEP III was meaningfully oversubscribed,” said Glenn Oken, vice president and managing director. “The fund’s loyal LP [limited partner] base consists of university endowments, charitable foundations and family offices in the U.S. and Europe.”
There were 52 investors in the offering, according to a July 12 U.S. Securities and Exchange Commission filing.
Mangrove invests in privately owned companies in the U.S. and Canada, including industrial product and consumer product manufacturers, industrial services and distribution companies. Its investments are in non-commodity firms, with strong barriers to entry and often with some engineering content.
The company focuses on the lower middle market, with target companies typically earning between $2 million and $10 million of earnings before interest, taxes, depreciation and amortization.
Since 2007, Mangrove’s team has invested in roughly 140 companies in 60 industries collectively, Oken said.
“A chief differentiator for Mangrove is its four-partner internal operating team that serves as a powerful support system to owner/operators seeking to break through inflection points, optimize functional areas and build value, while fostering healthy cultures at their companies,” he said.
Mangrove raised $60 million for its first fund, followed by a $125 million capital raise for its second fund in 2013, according to Palico, a private equity funds marketplace.