JW Childs holds first close on Fund IV

JW Childs Associates has held an interim close on $235 million for its fourth fund, according to documents filed with the Securities and Exchange Commission on Monday.

JW Childs Equity Partners IV reached $235 million on its way to a target of $450 million, with help from the Canada Pension Plan Investment Board (CPPIB) $119 million investment as part of JW Childs’ restructuring last month.

Fund IV originally launched in 2006 with a target of $2.5 million, but failed to make a first close, leading to the loss of key management personnel including co-founder Steven Segal, president Dana Schmaltz and partner Ted Yun.

CPPIB and Goldman Sachs led the $596 million restructuring of JW Childs. The restructure transferred Fund III’s remaining five portfolio companies into a newly capitalised vehicle called the Winter Street Opportunities Fund.

CPPIB and Goldman, who bought the assets of Fund III, valued it at around $1 billion. As part of the deal, most LPs chose to cash out their positions in Fund III.

The Boston-based private equity firm, which specialises in leveraged buyouts and recapitalisations of middle-market companies, was founded in 1995 by chairman John Childs and partner Adam Suttin. Since its launch, the firm has invested around $3 billion in more than 40 mid-market businesses in North America, according to its website.