Wynnchurch Capital Eyes $3B for Mid-Market Buyout Vehicle

Wynnchurch Capital, a Rosemont, IL-based middle-market private equity firm, is returning to the fundraising market with its largest-ever buyout vehicle, with a final close value of up to $3 billion.

The planned fundraise continues Wynnchurch’s swift increase in fund size, which gathered $1.3 billion for its fourth fund in 2014 and approximately $2.2 billion for its fifth fund in 2020.

Rhode Island Employees Retirement Systems has committed roughly $30 million to the fund, having previously committed $40 million to the firm’s fifth fund.

Wynnchurch has achieved a net multiple of 1.9x and a net IRR of 22% since inception, according to the pension system, while Fund V is currently tracking at a 1.2x net multiple and 14% IRR.

“The firm’s strong performance can be attributed, in part, to their ability to source deals at low multiples relative to other middle market buyouts,” according to an investor document from the system. “They specifically target companies that are underperforming, stressed and distressed, and healthy companies that can be purchased at a discount.”

Wynnchurch will charge a 2% management fee for Fund VI until the conclusion of the investment term, then 2% on invested money for the next 10 years, then 1.5% on invested capital.