Press release, October 2, 2006
Berkshire Partners Closes Seventh Investment Fund
Boston, MA - October 2, 2006 - Berkshire Partners LLC ("Berkshire"), today announced the closing of the Boston-based private equity firm's seventh investment fund, Berkshire Fund VII. The Fund, including Berkshire's coinvestment, has total capitalization of $3.1 billion. The Fund's capital was subscribed almost entirely from institutional investors in previous Berkshire funds.
Investors who committed to Fund VII include many of the world's largest endowments, foundations, pension funds and insurance companies. The portfolio is expected to consist largely of North American-based investments, with many expected to have significant overseas operations. Berkshire makes equity investments of $50 million to $350 million, generally in private companies. As with its previous funds, the firm engaged no intermediary to assist in fundraising.
"We are very grateful for the continued support of our investors and for the interest shown in the Fund by others," stated Kevin T. Callaghan, Managing Director of Berkshire Partners.
Berkshire seeks companies with acquisition values between $200 million and $1.5 billion. Over the past two decades, the firm has invested in over 85 mid-sized companies with more than $15 billion of acquisition value and combined revenues in excess of $20 billion.
Berkshire's initial fund was raised in 1984. The firm has developed specific industry experience in several areas including retailing, consumer products, business services, manufacturing, transportation and communications. The firm's transactions have included leveraged acquisitions, growth equity investments, and turnarounds. Some of the notable Berkshire companies which are now publicly traded include Bare Escentuals, Inc., Crown Castle International Corporation, Hexcel Corporation and Carter's, Inc. Recent investments by Berkshire include Vi-Jon and N.E.W. Customer Service Companies, Inc.
Berkshire's investment staff is comprised of 38 people with a broad range of backgrounds and experiences, including consulting, investment banking, commercial finance, and operations. The original team, which came together in the mid 1980s, has expanded significantly as the firm's capital base and investment scope have grown.