Sentinel Capital Partners, a private equity firm whose portfolio includes a chain of Pizza Hut and Taco Bell franchises, has closed its fifth fund after collecting commitments of $1.3 billion.
The New York firm reportedly oversubscribed by as much as three times, surpassing a $1.1 billion target it had set for Sentinel Capital Partners V LP.
Sentinel plans to continue buying companies with enterprise values between $25 million and $225 million, and roughly $35 million in Ebitda.
The firm also pursues add-on acquisitions for its current portfolio companies, which include Colson Group Inc., a Chicago-based manufacturer of industrial casters and wheels, Cincinnati-based specialty door maker Chase Doors Inc. and Atlanta restaurant chain Huddle House Inc.
Law firm Kirkland & Ellis LLP represented Sentinel while Credit Suisse Securities (USA) Inc. LLC advised the firm on the private placement.
Sentinel specializes in various sectors, especially aerospace, consumer products, restaurants, health-care and manufacturing.
The closing of Fund V comes on the heels of Fund IV generating exceptional returns. After raising $765 million, Fund IV generated a 40.5 percent net internal rate of return and a 1.6 times multiple, according to public disclosures from California Public Employees' Retirement System, an investor in the fund.