Pamlico Capital, the private-equity unit of Wachovia Corp. before the bank was purchased by Wells Fargo & Co., plans to seek $500 million for the first fund since it went out on its own, according to two people with knowledge of the matter.
The firm, based in Charlotte, N.C., has yet to send marketing materials to prospective investors, said the people, who asked not to be identified because the information is private. Kelly Holman, an outside spokesman for Pamlico, declined to comment on fundraising.
Pamlico, formerly known as Wachovia Capital Partners, spun out of the bank in 2010, after the acquisition of its parent by Wells Fargo in 2008 during the peak of the financial crisis. Pamlico raised more than $1 billion in 2007 to purchase so-called secondary interests in the private-equity portfolio created at the bank as well as invest in new deals.
That fund received backing from Wachovia and outside investors including HarbourVest Partners LLC, Lexington Partners Inc., Partners Group Holdings AG, Goldman Sachs Group Inc., General Electric Co. Landmark Partners and high-net-worth individuals. Now named Pamlico Capital II, the fund has produced a 1.8 times multiple and 21 percent internal rate of return, the people said.
Pamlico seeks to invest $25 million to $75 million per deal in companies focused on business and technology services, communications and health care, according to its website. Pamlico’s past investments include Greenway Medical Technologies Inc., a provider of electronic health records, which had an initial public offering in February, and Crosman Corp., a manufacturer of airguns that it sold to private-equity firm Wellspring Capital Management LLC.
Pamlico, founded in 1988, manages more than $2 billion in assets, according to its website.