MFG Partners Closes Inaugural Private Equity Fund

June 6, 2024: MFG Partners, a private equity firm specializing in lower-middle market industrial businesses, recently announced the successful closing of their inaugural fund, exceeding their initial target. This accomplishment signifies a significant development for the firm and reflects growing investor confidence in the industrial sector.

The newly established fund, “Fund I,” garnered $299,180,000 in capital commitments. Notably, the fund surpassed its initial fundraising goals, attracting diverse institutional investors. This group included prominent entities such as university endowments, insurance companies, pension funds, and private foundations.

Before launching Fund I, MFG Partners established a strong track record as an independent sponsor, having completed over 20 acquisitions. This experience presumably instilled confidence in potential investors, contributing to the fund’s successful closing.

Commenting on the achievement, Jeff Mizrahi, co-founder of MFG Partners, expressed satisfaction with the outcome. He highlighted the importance of exceeding their fundraising target, emphasizing that the capital will empower MFG Partners to “continue executing our strategy and grow our exceptionally talented team.”

The capital raised through Fund I is anticipated to fuel MFG Partners’ investment activities in the industrial sector. The firm focuses on closely held companies within the lower-middle market segment, targeting manufacturing, distribution, and industrial services businesses. MFG Partners leverages its expertise to collaborate with existing management teams, aiming to drive growth through strategic initiatives. These initiatives may encompass reinvesting cash flow to enhance operations, acquiring key assets, or recruiting skilled personnel.

The successful closing of Fund I signifies a positive development for MFG Partners and the broader industrial sector. The substantial capital secured from diverse institutional investors underscores the investor community’s growing interest in this area. MFG Partners’ experience and focus on collaboration with management teams position the firm to capitalize on promising investment opportunities within the industrial landscape.

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