The private equity firm co-founded by former Bank of America CEO Hugh McColl Jr. has raised $125 million for a second fund to invest in midsized companies in the Southeast.
Charlotte-based Falfurrias Capital Partners, founded in 2006, topped the $97 million it raised for its first fund, co-founder Marc Oken, Bank of America’s former chief financial officer, said on Tuesday. The fund is expected to close this month.
In a securities filing in May, Falfurrias said it was seeking to raise $200 million, but Oken said it was a tough fundraising market with a lot of private equity firms raising money at the same time. Although the firm’s 2006 fund was a top performer among its peers, institutional investors are looking for firms with a proven track record over multiple funds, he said.
Falfurrias has lined up undisclosed institutional and individual investors for its second fund. It has already used the pool to invest in Instrument Transformer Equipment Corp., a Charlotte-based company that makes transformer products used by electric utilities and industrial customers.
Falfurrias, which gets its name from a favorite hunting ground in Texas, is best known for a successful investment in the Bojangles’ restaurant chain, which it sold in 2011.
“We are on the prowl,” Oken said. “We’re looking for the next Bojangles.’”
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