Exclusive: Chicago Growth Partners calls it quits

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.

Sign up for Dan Primack’s daily email newsletter on deals and deal-makers: GetTermSheet.com

Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. Sign up today.

Read More

CryptocurrencyInvestingBanksReal Estate