Norwest Equity Partners and Norwest Mezzanine Partners Raise $2.4 Billion in Capital and Announce Key Personnel Changes to Strengthen Team
April 14, 2015
Minneapolis, Minnesota – Norwest Equity Partners (NEP), a leading middle market equity investment firm, is pleased to announce the formation of Norwest Equity Partners X, LP (NEP X), a $1.6 billion limited partnership formed to build companies into industry leaders, and Norwest Mezzanine Partners IV, LP (NMP IV), an $800 million limited partnership formed by NEP’s affiliated mezzanine investment firm, Norwest Mezzanine Partners (NMP), to invest flexible junior capital in support of private equity-sponsored transactions.
The new capital, which is significantly higher than the firm’s previous capital raises in 2008 (NEP IX with $1.2 billion and NMP III with $750 million), positions the firm to achieve its strategic growth initiatives for the future. Since inception, the firm has raised over $7.1 billion.
NEP and NMP have consistently made successful investments and generated exceptional returns through a singular focus on building companies into industry leaders. Tim DeVries, NEP Managing General Partner, stated, “It would be an understatement to say that this is an exciting time for our firm. In addition to raising $2.4 billion of new capital, we are also proudly celebrating our firm’s 54th anniversary and the long and distinguished history we’ve built over the years. NEP X and NMP IV are tremendous new opportunities and position us for great investments in the future.”
In addition to its recent capital raise, the firm has also announced key personnel changes to strengthen its team. “We invest capital to support our companies and continuously evaluate their needs to help them grow and succeed. Internally, we measure our own success with how we collectively think and execute to make a difference. Our people are collaborative, smart, and focused on operational excellence to create long-term value – both for our firm and our companies. I couldn’t be more proud of our team,” DeVries continued.
Brian Allingham has been promoted from Principal to Administrative Partner and will be primarily responsible for all operational, administrative, and compliance responsibilities for both buyout and mezzanine funds. Allingham will continue to source NEP investment opportunities and work closely with portfolio company management teams to develop and execute strategic growth and operational improvement plans. Prior to joining NEP in 2004, Allingham worked in London for PricewaterhouseCoopers in their global capital markets division.
One of NEP’s investment tenets is to connect portfolio companies to its network of value-added resources and functional expertise. Jack Dempsey, a Senior Advisor Consultant at NEP since 2011, has been named Senior Vice President of Strategy and will continue to work directly with the firm’s portfolio company management teams to develop and execute strategies to grow revenues and EBITDA. Prior to NEP, he spent 18 years at McKinsey and Company, most recently as a Senior Partner working on strategy and operations engagements with companies across multiple industries.
Sean Stevens has joined NMP as its newest investment Partner helping to broaden its reach to private equity sponsors and grow its portfolio of investments. Prior to NMP, Stevens worked at KKR, KeyBanc Capital Markets, and Bank of America Merrill Lynch. In addition, he held positions at Mezzanine Management, investing in mezzanine debt and private equity transactions for middle market companies.
NEP invests $50 -$200 million per transaction across a variety of industry sectors, including agriculture, applied technology, consumer, distribution, diversified industrials, energy, healthcare and technology & business services. NMP’s approach focuses on supporting private equity-sponsored transactions through $20 -$75 million junior capital investments across industry sectors similar to NEP.