ICV closes Fund III on $400m

ICV transactions typically include 45-55% equity, with the remainder coming in the form of senior debt. 

ICV Partners held a final close on $400 million for its latest fund, the firm announced in a statement on Wednesday.

ICV Partners III will offer a continuation of the firm’s strategy, investing in lower mid-market companies with revenues between $25 million and $250 million and EBITDA margins of 13 percent or greater, according to its website. The firm’s deals typically include cash equity equal to between 45 and 55 percent of the transaction value, with the remaining capital taking the form of third party senior debt.   

“A lot of our deals get done with traditional senior lenders,” ICV Partners president Willie Woods told Private Debt Investor. “[A lot of them] are more comfortable with the economy, more comfortable putting assets to work … and frankly, [they] get paid well for it.”

ICV has been marketing the fund for around two years, Woods said. The firm’s previous fund, a $313 million 2006 vintage vehicle, had netted a 9.7 percent internal rate of return and 1.4x investment multiple as of 30 September, according to the California Public Employees’ Retirement System.

ICV has been marketing the fund since at least 2012. Limited partners in ICV Partners III include public pensions as well as corporate and family offices. PDI’s Research & Analytics division indicates that Fund III received commitments from The Alameda County Retirement Association, Illinois Municipal Retirement Fund, Teachers’ Retirement System of Illinois, Virginia Retirement System and several New York City and State pensions.

“We are very pleased to have met our target for Fund III as a result of the strong support from a majority of our existing investors, and are very pleased to welcome a highly regarded set of new investors to ICV,” said Woods in a statement.

ICV was founded in 1998 with the name Inner City Ventures. The firm maintains offices in New York City and Atlanta.