Platte River closes fourth fund on $625m

Inputs are likely to be the focus of agricultural investments from the Denver-based firm’s new vehicle.

Agriculture will be among the target sectors for a new fund raised by Denver-based mid-market private equity firm Platte River Equity that closed on $625 million late last month.

Platte River Equity IV surpassed its initial target of $550 million after drawing investments from endowments, pensions, private foundations, funds of funds, family offices and high-net-worth individuals, the firm said in a statement.  The firm began fundraising for the vehicle in March, with Capstone Partners acting as placement agent.

The previous fund in the series, Platte River Equity III, surpassed its initial target of $350 million to close on $405 million in late 2012.

Platte River typically makes control equity investments of between $10 million and $80 million in companies with enterprise values of between $20 million and $250 million.

The firm categorizes its agricultural investments under a vertical that also includes chemicals, metals and minerals. In addition, Platte River also invests in aerospace and transportation as well as industrial and energy products and services.

On its website, Platte River says that these sectors are united by growth stemming from long-term secular trends including resource scarcity, the consolidation of supply chains, growth in developing countries and lack of skilled labor.

Its current portfolio includes sulfur-based fertilizer provider Tiger Sul and Profile Products, which sells soil maintenance products. Platte River exited a previous investment in potash producer Intrepid Potash when the company closed its initial public offering on the New York Stock Exchange in 2008.

Founded in 2006, Platte River has $700 million in assets under management, according to PEI data.