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Exclusive: Castle Harlan to wind down

Ninth Annual M&A Advisors Awards And SummitNinth Annual M&A Advisors Awards And Summit
John Castle, chairman and chief executive officer of Castle Harlan Inc.Photograph by Peter Foley — Bloomberg via Getty Images

Private equity firm Castle Harlan has decided to wind down operations after 28 years in business, Fortune has learned.

The New York-based firm will continue to manage out its fourth and fifth funds, the latter of which was an $800 million vehicle raised in 2007. It had been trying to raise a successor fund under the brand name CHI Private Equity, but that effort has been shelved and any capital commitments will be rescinded.

Firm president Howard Morgan is in the process of leaving the firm, as are managing directors Tariq Osman and Heather Faust. Both Osman and Faust will continue to serve on a pair of existing Castle Harlan portfolio company boards.

Castle Harlan acknowledged the wind-down decision in a brief statement, but declined to comment further or make CEO John Castle available for comment.

According to a report from the Oregon State Treasury, Castle Harlan’s fourth fund had an IRR of 14.9% and a total value multiple of 1.44x through March 31, 2015. The figures for Fund V were an IRR of 28.8% and a 1.84x multiple.

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