Compass Group Equity Partners, a St. Louis-based private equity firm, has closed Compass Group Fund III, hitting a hard cap of $408 million.

Compass Group follows an investment strategy in the lower middle market by analyzing subsectors that exhibit strong macroeconomic trends within niche manufacturing & distribution and business & consumer services industries. The company will collaborate with companies in mid-America (“Between the Mountain Ranges”) and financial characteristics including Ebitda between $2 million and $15 million, enterprise values of $20 million to $200 million and strong margin and cash flow generation, among other things.

McGuireWoods served as legal counsel for the fund and Aqueduct Capital Group provided placement agent services.