Waud Capital Partners plans to seek about $650 million for its fourth private equity fund, according to two people with knowledge of the matter. The Chicago-based firm plans to start marketing the pool early next year, according to one of the people. Its last fund gathered $463 million in 2011. Mark Flower, chief financial officer and chief compliance officer, couldn’t be reached for comment.

Waud Capital usually invests a portion of capital initially in a company, reserving the rest for growth. The firm typically makes equity investments of $20 million to $100 million in companies with $30 million to $300 million in enterprise value, according to the firm’s website. It focuses on the health care services, business and consumer services, specialty distribution and industrial sectors. Since raising the last fund, the firm has completed investments in six platform companies and 33 follow-on investments as of July. The 2011 fund produced a 22 percent return as of June 30, according to performance data from El Paso Firemen & Policemen’s Pension Fund. Reeve Waud, who is managing partner, founded the firm in 1993.

This article was taken from the Bloomberg Brief Private Equity Newsletter.

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