Securities and Exchange Commission has charged a charter school operator in Chicago
By Dan Primack
May 21, 2014

FORTUNE — Private equity firm Chicago Growth Partners has abandoned efforts to raise its third fund, Fortune has learned. Instead, the mid-market private equity firm’s partners have opted to begin winding things down.

CGP was formed more than 30 years ago as the in-house investment group of investment bank William Blair & Co., before spinning out as an independent entity in 2004. It typically looked to acquire profitable companies within the education, healthcare, industrial technology and tech-enabled services sectors, with typical equity outlays of between $15 million and $75 million.

The firm raised $280 million for its first independent fund, before securing around $500 million for its second vehicle in 2008 (easily surpassing its $400 million target). Limited partners included Goldman Sachs (GS), RCP Advisors, Skandia and Twin Bridge Capital Partners

CGP had been in market since late 2012 with plans to raise between $400 million and $500 million for its third fund, and even managed to hold a first close from investors like the Minnesota State Board of Investment (which committed $75 million). But by early spring the firm’s four managing directors decided to throw in the towel, opting instead to go off an pursue independent projects that were more sector-specific. They are expected to continue managing out the firm’s existing portfolio of nearly 20 companies.

CGP has not responded to requests for comment.

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