Wayzata closes Fund III on $2.7bn

The firm, which focuses on distressed investments primarily in the US, beat its $2.5bn target.

Wayzata Investment Partners has closed its third distressed investment fund on about $2.7 billion, just over its $2.5 billion target, according to a person with knowledge of the fundraising.

Wayzata did not return a call for comment.

The firm officially closed Wayzata Opportunities Fund III Friday, after about a year in the market, the person said. The firm had collected about $756.5 million as of July 2012, according to a filing with the US Securities and Exchange Commission.

Wayzata makes distressed for control and special situations investments, primarily in the US. The firm raised $3.3 billion for its second fund in 2008. Park Hill Group worked as placement agent for Funds II and III. Wayzata Opportunities Fund II was generating a 15.1 percent net internal rate of return and a 2.9x investment multiple as of 30 September, according to performance information from the California Public Employees’ Retirement System.

Wayzata attracted investments from some new LPs, and its investor base includes capital from the Nebraska Investment Council, which committed $25 million earlier this year. Other LPs include the Kentucky Retirement System, the Maine Public Employees Retirement System, the Florida State Board of Administration and the Minnesota State Board of Investment. 

The firm was formed in 2004 after a management buyout of the former CFSC Wayland Advisers, a subsidiary of Cargill. Wayzata is led by Patrick Halloran, managing partner.

Earlier this year, Wayzata agreed to provide a $30 million bankruptcy loan to aluminium producer Ormet Corporation and also agreed to buy the company’s assets, according to a statement from Ormet.