Private equity firm Clearview Capital launches latest fund
Clearview Capital is planning to make its first investment from its new $550 million fund either later this year or in early 2019, according to executives of the Stamford-based private equity firm.
Forty institutional investors provided 95 percent of the capital commitments for Fund IV, while 42 individual investors accounted for the balance of the contributions. The fund’s size surpasses by about 70 percent the $325 million Fund III that was raised in 2013.
With the fourth fund, Clearview intends to invest in firms with adjusted annual earnings between $4 million and $20 million and equity from $15 million to $75 million.
“We feel really good about this new fund,” said Clearview Co-Founder and Managing Partner James Andersen. “We had an awful lot of demand, but we limited ourselves to $550 million because raising more than that would have meant having to do larger deals than we would like. We had essentially all our investors from Fund III come back for Fund IV, and we brought in five new investors.”
To support Fund IV, Clearview also raised a $108 million “captive mezzanine” fund. Whenever the firm makes a deal that uses mezzanine financing, the mezzanine fund would take 49 percent of that security.
Clearview has acquired or sold several companies in the past year. In July, it bought Brockton, Mass.-based Apothecare, a long-term care pharmacy.
In April, Clearview acquired Scottsdale, Ariz.-based substance-abuse treatment firm Community Medical Services Holdings. In February, the firm acquired Acworth, Ga.-based direct mailing company Mudlick Mail.
Last December, it sold GCR, a New Orleans-based software development and consulting firm focused on the public sector and Xact Data Discovery, a Mission, Kan.-based provider of IT services for the legal field.
Financial terms were not disclosed for any of those recent deals.
Clearview has invested in 30 companies, through which it has made 69 acquisitions. Those firms have been concentrated in business services, health care, manufacturing and specialized distribution.
Today, the firm’s portfolio comprises 11 businesses.
Clearview’s investors include funds of funds, university endowments and public pension funds.
“Jim (Andersen) sets the tone for them, and it’s just a fantastic team that is super talented,” Mike Sullivan, the Dartmouth endowment’s managing director in charge of private equity and venture capital programs, said in an interview earlier this year. “Their performance is right at the top of the group. They’ve been consistent year after year and investment after investment. That consistency is what makes them stand out.”
Among recent measures, alternative-assets data and intelligence firm Preqin ranked Clearview in 2016 in the top group of consistently high-performing buyout firms.
Clearview launched in 1999 in a room above a garage by Binney Park in the Old Greenwich section of Greenwich. Later, it relocated to offices in downtown Greenwich and then back to Old Greenwich. It moved in July 2016 to its current home on the 11th floor of the office complex at 1010 Washington Blvd, overlooking Mill River Park.
Clearview now employs 20, with plans to hire three more. Many live in the area, including co-founder and managing partner James Andersen, a Wilton resident.
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