Neuberger Berman-Backed Saw Mill Closes Continuation Fund

Briarcliff Manor, NY-based middle market investor Saw Mill Capital Partners has received backing from investment manager Neuberger Berman for a continuation fund for two outstanding investments from its sophomore vehicle.

The continuation fund – Saw Mill Capital CV – has acquired Climate Pros and Industrial Refrigeration Pros from Saw Mill Capital Partners II, a $340 million fund the firm closed in 2017.

Investors in Fund II were provided a choice to receive liquidity or continue their investment, Saw Mill said.

“This fresh and dedicated capital commitment will accelerate the investments in technology, organic expansion and strategic acquisitions, and provide the necessary time to realize the full potential of both rapidly growing companies,” noted Tim Nelson, Partner at Saw Mill.

Climate Pros is a tech-enabled provider of mission critical refrigeration and HVAC repair, maintenance and modernization services, while Industrial Refrigeration Pros is a provider of design, construction, repair and maintenance services for mission critical ammonia and CO2 based industrial refrigeration systems.

Both companies in aggregate have grown from $90 million to over $550 millon in revenue since Saw Mill’s investment.

Neuberger Berman led the continuation fund by providing a “significant capital commitment,” according to Saw Mill, while accounts managed by Hamilton Lane also contributed.

Saw Mill closed its debut fund on $270 million in 2007. The firm invests exclusively in manufacturing, service and distribution businesses.