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Peterson Partners, a Salt Lake City private equity firm, has raised $50 million for its newest fund from several Utah and U.S. investors, including Real Salt Lake owner David Checketts and the former CEO of Toys R Us.
And because interest in the new fund topped expectations, Peterson may expand the fund, partner Brandon Cope said Monday.
"We were over-subscribed," he said. "We are talking about bumping it up to $60 to $65 million."
Despite the rough economy, fundraising took only two months. Cope said Peterson investment results are some of the best in the private equity industry. With that record, a number of people invested in other Peterson funds were eager to pony up the $2 million minimum for the new investment pool.
"We have been in the top 10 percent in essentially all of our (five) previous funds," he said.
There could be another reason. According to consulting firm Rothstein Kass, 2011 is shaping up to be a good year for private equity companies. Nearly 80 percent of executives who responded to a Rothstein Kass survey in January said they saw enough thawing in the economy to expect better investment deals for their funds this year.
Besides Checketts, Peterson pulled in money from Robert Nakasone, former CEO of Toys R Us, and Row Moriarty, a former Harvard Business School professor and member of the Staples board of directors.
Cope said other fund investors did not want their names made public. But they include well-known Utahns, as well as CEOs and the chairmen of national companies, he said.
"These limited partners tend to be experienced. They run companies."
He said the fund, Peterson Partners Fund VI, will put money into companies with revenue from $10 million to $50 million. Typical investments will range from $2 million to $10 million. Peterson also will look for buyout opportunities.
Since its founding in 1995, Peterson has managed more than $300 million through its five funds. That figure is down to $150 million to $200 million today.
The company has owned stakes in companies such as EnergySolutions, Diamond Rental and 3form, an architectural building materials company.
"We are very much generalists. We tend to back great management teams, first and foremost, with typically really interesting, growing businesses," Cope said.
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Peterson Partner investments
JetBlue Airways
Azul Airlines
Asurion Insurance Services Inc.
Vivint (formerly APX Alarm)