By Dan Primack
October 6, 2014

Earlier this year we reported that private equity firm Chicago Growth Partners had abandoned plans to raise a third fund, and subsequently added that some of the team had hung their own shingle in Newport Beach (L Squared Capital Partners), backed by some large family offices.

Now comes word that several other CGP partners are launching a new Chicago-based firm called ParkerGale LP, which will focus on mid-market buyouts of tech-enabled services companies. The plan is to soon begin raising a $200 million-targeted debut fund. It also has some capital commitments from select LPs that would allow it to do one-off deals before the fund is formally raised.

ParkerGale’s five founding partners are: Devin Mathews, Dave Chandler, Jim Milbery, Kristina Heinze and Ryan Milligan.

“Some of the feedback we got from the market when trying unsuccessfully to raise CGP III was that we were too generalist, in that he did tech and healthcare and education and industrial,” Matthews explains. “So the tech team liked working together, and decided that it would make sense to try raising a much smaller, sector-focused fund.”

ParkerGale’s principals will continue to manage out a handful of existing CGP tech investments.

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