JW Childs launches $450m Fund IV after restructure

The fundraising effort comes more than a decade after the firm’s Fund III raised $1.75bn.

JW Childs Associates has launched JW Childs Equity Partners IV with a $450 million target, according to documents filed with the US Securities and Exchange Commission on Monday.

The firm initially launched Fund IV with a $2.5 billion target in 2006 but later canceled the offering, according to media reports. It is understood that limited partners in the firm’s Fund III were seeking more distributions before committing to a fourth fund. After the cancelled fundraising, JW Childs lost key management team members, including co-founder Steven Segal in 2006 and president Dana Schmaltz and partner Ted Yun in 2007.

Last month, Fund III investors reportedly approved a restructuring plan that will transfer Fund III’s remaining five portfolio companies into a newly capitalised vehicle. The restructuring was led by the Canada Pension Plan Investment Board and Goldman Sachs group, who bought the assets of Fund III, valued at about $1 billion. As part of the deal, most LPs chose to cash out their positions in the fund.

Park Hill Group and Beirut, Lebanon-based Milestones Capital will receive sales compensation from Fund IV, according to the SEC documents.

JW Childs’ Fund III launched in 2002 and raised $1.75 billion, according toPrivate Equity International’s Research and Analytics division. Limited partners in the fund include the Boston City Retirement System, Toronto-based fund of funds manager RBC Capital Partners and the Kenyon College endowment.

JW Childs has invested more than $3 billion in more than 40 North American mid-market businesses. Portfolio companies include US specialty bedding retailer Mattress Firm and Sunny Delight Beverages Company, according to the firm’s website.

The Boston-based firm was founded by chairman and partner John Childs and Adam Suttin in 1995. Childs was previously a senior managing director at Thomas H Lee Company. The firm declined to comment.