Court Square Capital Partners, the private-equity firm that spun out from Citigroup Inc. (C) in 2006, has raised more than $2 billion so far for its latest buyout fund, according to a person familiar with the situation.
Court Square Capital Partners III LP is seeking $3 billion, the same amount that its prior fund raised in 2006, this person said. Trevor Gibbons, an outside spokesman at Edelman in New York, declined to comment for Court Square.
The firm, based in New York, is seeking capital as a record 1,858 private-equity funds compete for money, according to data compiled by Preqin Ltd., a London-based research firm. The new fund will invest in upper mid-market companies with enterprise values of $150 million to $1 billion, mainly in business services, telecommunications and technology, general industrial and health care, according to April meeting minutes from the Arkansas Teacher Retirement System.
Court Square in May purchased PRV Aerospace LLC, a precision manufacturer of flight parts for the commercial aerospace and defense industries, from private-equity firm Platte River Ventures. The firm in March agreed to buy Physiotherapy Associates, a provider of outpatient rehabilitation services, from Water Street Healthcare Partners and Wind Point Partners.
The predecessor fund was producing a multiple of 1.3 times capital and 9.9 percent internal rate of return as of March 31, according to performance data from Oregon Public Employees Retirement Fund, which said the fund has drawn down $79.3 million of a $100 million commitment.
The firm has invested more than $4.5 billion in more than 150 deals that have returned $14 billion, according to its website.
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