Norwest Capital Raises $1.4B for Two Funds

Norwest Capital Advisors closed two new funds with a total of $1.4 billion in committed capital. Norwest Equity Partners XI raised $1 billion, while Norwest Mezzanine Partners V secured $400 million.

The Norwest Equity Partners (NEP) strategy focuses on middle-market companies in business and consumer services, consumer products, and industrials sectors, while Norwest Mezzanine Partners (NMP) invests subordinated debt and equity capital in partnership with financial sponsors across various industries.

The dual fund close is the first since the launch of Norwest Capital as a registered investment advisor last year.

Wells Fargo sold NEP and NMP last September for a reported $2 billion to a consortium including Adams Street Partners, Lexington Partners, Pantheon, Atalaya Capital Management and AlpInvest Partners. The move was part of Wells Fargo’s effort to focus on its core banking business. After the sale, NEP and NMP began operating under Norwest Capital, and an independent registered investment advisor.

The firm said several large institutional investors have joined as limited partners, and both funds are already active, with Norwest Equity Partners XI completing three investments and Norwest Mezzanine Partners V finalizing one deal.

“We’re pleased to see this demand for our thoughtful and partnership-driven approach across our two distinct investment platforms and strategies,” said managing partner Tim DeVries. “We look forward to continuing to deliver on our firm’s established reputation as a leader in middle marketing investing.”

Kirkland & Ellis LLP acted as legal counsel, and Lazard acted as exclusive placement agent for the two funds.