Baird Capital closes $300m fund

The US buyout arm of Baird Private Equity has closed its $300m fourth fund, which will invest in mid-market business services and manufactured products companies.

Baird Capital Partners, the US buyout arm of Baird Private Equity, has closed its fourth fund, BCP IV, on $300 million (€225 million).

It will follow the firm’s established investment strategy, providing growth and change-of-control capital to middle-market companies in the business services and manufactured products sectors.

Already, BCP IV has made three investments: auditing services firm Accume Partners, pharmaceutical and biotech management consulting firm Campbell Alliance Group, and outdoor playset makers Backyard Adventures/Leisure Time Products.

“Our expectations would be to [invest in] 12 to 15 platform businesses [total],” said Baird Capital partner Gordon Pan. “Typically we like to invest anywhere between $20 million to $25 million” per company.

The fund took investments from both existing and new limited partners, including American Family Mutual Insurance, Hexagon Investments, The Northwestern Mutual Life Insurance Company and Thrivent Financial for Lutherans as well as its parent Robert Baird.

Baird Capital has invested in 36 companies since its 1989 establishment. The firm concentrates on business services and manufactured products firms typically valued between $25 million and $125 million.

It has a team of more than 40 investment executives in its Chicago and Milwaukee, Wisconsin offices, and more than 20 in its offices in Beijing, Hong Kong and Shanghai. It also recently established resources in Bangalore, India through a partnership with advisory firm Tholons.

Baird Private Equity has raised and managed $1.8 billion in capital.