US private equity firm Compass Group Equity Partners has closed Compass Group Fund III and hit its hard cap of $408m, the firm’s second oversubscribed fundraising in two years.

According to a press release, the fund attracted “strong carryover” from investors in the firm’s previous fund, which closed in April 2022, having secured support from insurance companies, endowments, registered investment advisors, and foundations.

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Since its first investment in 2015, Compass Group has invested in 14 portfolio companies, more than 230 bolt-ons and has completed four exits.

Compass Group invests in the lower middle market in subsectors that exhibit strong macroeconomic trends within niche manufacturing & distribution and business & consumer services industries.

McGuireWoods served as legal counsel for the fund and Aqueduct Capital Group provided placement agent services.

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