News

June 1, 2004

Norwest Mezzanine Partners Closes Second Fund With $400 Million

Norwest Mezzanine Partners (NMP) announced today that it has closed its second fund, Norwest Mezzanine Partners II, LP, with $400 million in commitments. Located in both Minneapolis and Boston, NMP is a standalone investment partnership that is affiliated with Norwest Equity Partners (NEP) and invests up to $40 million in middle-market buyout, recapitalization and growth transactions.

NMP’s first fund, NMP I, started in September 2000 with $250 million in commitments. NMP I completed 18 investments in three and a half years and enjoyed extraordinary credit quality. NMP I completed its final investment in March 2004. John Turner, head of the Boston NMP office, shares, “We are very proud of our ability to fully invest NMP I in three and a half years and more importantly, in very high-quality companies. The investment period coincided with the recession, and it was not always easy to make investment decisions. In the end, we are very pleased with the portfolio we have built.”

To date, NMP I has achieved liquidity on one of its initial investments. WARN Industries, Inc., a manufacturer of automotive components and accessories, was acquired by Dover Resources, a subsidiary of Dover Corporation (NYSE:DOV), for approximately $325 million last year. Due to the strong quality of the portfolio, NMP I expects an additional three to five favorable liquidity events over the next 18 months.

Michael Hall, head of the Minneapolis NMP office, adds, “We would like to thank all of our private equity capital partners in assisting us in building both a strong investment portfolio as well as a solid franchise in the mezzanine market. These strong private equity relationships continue to generate very strong deal flow, and we expect our first investments in NMP II to close shortly.”

Timothy DeVries, managing general partner of NMP, says, “While we are exceedingly pleased with our investment performance, we are also delighted with our ability to have built a solid team of professionals and establish the ‘NMP’ name as a nationwide, top-of-class mezzanine provider.”

Norwest Equity Partners (NEP) is a leading middle market investment focused on partnering with business owners and building companies into industry leaders. With a reputation for quality investments and exceptional financial returns since 1961, NEP manages nearly $5 billion of capital through a series of equity and mezzanine funds. Offering creative and flexible transaction solutions through management buyouts, recapitalizations and growth financings, NEP seeks $30-$150 million equity investment opportunities for growing and profitable companies within the agriculture, applied technology, business services, consumer products and services, distribution, healthcare and industrial industry sectors. NEP is headquartered in Minneapolis, Minnesota; please visit nep.com for more information.