Crestview Partners to Seek $3 Billion for Midmarket Fund

Crestview Partners, founded by two Goldman Sachs Group Inc. executives, plans to seek $3 billion for midmarket private-equity investments, according to a document prepared by a placement agent.

Crestview will begin marketing the new fund in 2013, according to the document. At that target, Crestview Partners III LP would exceed the $2.4 billion the prior fund gathered in 2007. James David, a spokesman at Kekst & Co., declined to comment on behalf of Crestview.

The New York-based firm makes investments in financial services, media and cable, health care and energy, primarily in the U.S., and says it takes a contrarian approach to deals. It does distressed-for-control transactions, rescue loans and financial restructurings.

The firm has seen a few recent exits. Together with MidOcean Partners, Crestview in June agreed to sell OneLink Communications, the largest provider of cable television and high-speed data services in Puerto Rico, for $585.3 million. Crestview in February sold its interest in Insight Communications Co. to Time Warner Cable Inc.

The predecessor fund, Crestview Partners II LP, was producing a 15.8 percent net internal rate of return and a 1.3 times multiple as of June 30, according to performance data on the website of California Public Employees’ Retirement System, or Calpers.

Tom Murphy and Barry Volpert, both previously at Goldman Sachs, founded Crestview in 2004.

To contact the reporter on this story: Sabrina Willmer in New York at swillmer2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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