Palladium Equity Partners has held the final closing of Palladium Equity Partners IV (PEP IV) at USD1.14 billion, including the commitment of the fund's general partner.
The fund significantly exceeded Palladium's target of USD800 million.
PEP IV will follow the same strategy as its predecessor, Palladium Equity Partners III, by investing in lower-middle market companies – particularly founder-owned enterprises – and with a focus on the fast-growing US Hispanic market.
PEP III is a 2005 vintage fund that closed on USD775 million.
PEP IV received strong support from existing limited partners of PEP IV's predecessor funds, and also attracted many first-time investors, including well known corporate and public pension plans, family offices, funds of funds, insurance companies and other retirement plans in North America, Latin America and Europe. PEP IV investors agreed to increase the fund's cap from its original USD1 billion in order to accommodate strong demand.
Marcos A Rodriguez, chairman and CEO of Palladium, says: "We are extremely pleased with our limited partners' support. With PEP IV, we plan to continue to apply our proven and disciplined investment process and our results-driven value creation model to seek to generate attractive risk-adjusted returns for our investors."
"As we deploy PEP IV, we are excited to partner with founders and management teams to help improve and grow their companies into larger and more valuable market leaders," says David Perez, president and COO of Palladium.