Atlanta-based private equity firm Roark Capital Group is raising up to $1.25 billion for its third fund, according to a regulatory filing. So far it already has secured more than $462 million in capital commitments, with Lazard (LAZ) serving as placement agent.
Roark is best known for its franchise-related investments, most of which have been in the restaurant sector. Last summer it bought fast-food chain Arby’s from Wendy’s (WEN) for $430 million, following earlier purchases of companies like Auntie Anne’s, Carvel, Cinnabon, Moe’s Southwest Grill and Seattle’s Best Coffee.
The firm also acquires companies in the business services, direct marketing and environmental services sectors. It typically likes to use low leverage in initial acquisitions.
Roark raised $413 million for its debut fund in 2005, and $1 billion for a follow-up vehicle in early 2008. Limited partners include the University of Michigan, which committed $20 million to Roark’s latest effort.
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