Research & Data

WestView Capital is most sought-after small US LBO firm

Blue Point Capital Partners came in second place while VMG Partners was in third position, according to a third-quarter report by Setter Capital.

-

WestView Capital was the most sought-after small US buyout manager on the secondaries market in the third quarter, according to a report released on Tuesday by Setter Capital.

Boston-based WestView, which has three funds, focuses on growth-oriented companies. Its most recent fund, WestView Capital Partners III, closed in 2013 with $430 million to invest in mid-market companies. WestView Capital II closed in 2009 on $325 million, above its $300 million goal.

It is followed by Blue Point Capital Partners, which focuses on lower mid-market companies in the manufacturing, business services and value-added distribution sectors. The firm has offices in Charlotte, Cleveland and Seattle.

San Francisco-based VMG Partners made it to third place in Setter’s list of the 20 most sought-after small US buyout managers. The firm recently raised $500 million for its third fund, VMG Partners III, in July, to invest in consumer product companies in the lower mid-market.

The funds of these in-demand managers price on average 5 percent better than funds of unrated managers.

Here are the 10 most sought-after small US buyout fund families:

  • WestView Capital
  • Blue Point Capital Partners
  • VMG Partners
  • Beecken, Petty & Co
  • Monomoy Capital Partners
  • Prophet Equity
  • Housatonic Partners
  • Morgenthaler Partners
  • Tenex Capital Management
  • Excellere Partners

Setter Capital based its rankings on its Setter Liquidity Ratings, which rates fund families as excellent, very good, good and unrated, depending on how sought after and saleable they are on the secondaries market. This is based on shortlists of more than 1,300 buyers that Setter covers, which are also often posted on its SecondaryLink platform, while also incorporating any saleability factors such as transfer restrictions for further accuracy.

The full list can be found here.