NEW YORK, April 26 -- Castle Harlan Inc., the New York-based merchant bank, announced today the closing of its new investment fund, Castle Harlan Partners II, L.P., with commitments from limited partners of $254 million.
John Castle, chairman of Castle Harlan, said investors include a blue chip roster of corporate and public pension funds, university endowments, foundations and individuals.
The partnership will invest in companies whose earnings can be significantly enhanced by redirection of corporate strategy, redeployment of assets or restructuring, he said.
"We see abundant opportunities," said Castle, "to acquire fundamentally sound companies that are suffering from too much debt or are otherwise available to be acquired on an attractive basis."
Castle Harlan was founded in 1987 by Castle, former president and chief executive officer of Donaldson, Lufkin & Jenrette, and Leonard Harlan, chairman of The Harlan Co., a diversified real estate advisory firm.
The firm's previous fund, Legend Capital Group, L.P., closed in November 1987 with commitments of $125 million. Its investments include Quantum Restaurants and Ethan Allen Inc., the furniture company, both of which subsequently had successful public offerings, as well as Delaware Management Holdings, the Philadelphia money manager with more than $25 billion in assets under management, and Long John Silver's Inc., the nation's largest quick-service seafood chain.
Harlan, who is president of Castle Harlan, noted that "Castle Harlan Partners II is the eighth such fund that John Castle or I have been involved with over the past 25 years. Those funds acquired or invested in some 125 companies during that period."
"With the current estimated value of Legend and the commitments for Castle Harlan Partners II," Harlan said, "the firm has more than $450 million in investment capital and controls properties with assets exceeding $26 billion."