FREMONT PARTNERS CLOSES $920 MILLION FUND

FREMONT PARTNERS CLOSES $920 MILLION FUND

San Francisco, California - February 4, 2002

Fremont Partners announced that it has closed on $920 million of commitments for Fremont Partners III, a private equity fund established to continue Fremont Partners' successful middle market investment program. The fund exceeded its $850 million target and represents a significant increase over Fremont Partners II, a $605 million fund established in 1996.

The successful fundraising effort includes strong support from existing and new investors. Investors participating in both funds have increased their commitments by 75%, while new investors comprise approximately 30% of Fremont Partners III. Representative investors include AMR Investments, Bill & Melinda Gates Foundation, Boeing, Delta Air Lines, Fremont Group, General Motors Asset Management, MetLife, The Vanderbilt University and Verizon Investment Management, as well as state pension plans, foundations and high net worth investors.

“We believe our fundraising success in today’s difficult marketplace is a result of investor confidence in Fremont Partners’ team, the consistency of our middle market strategy and the return opportunities available in the middle market,” said James Farrell, Managing Director.

BENNETT V. Southern Pacific (KOPF)
1989 Witness Murdered
Personal Tragedy
Approaching 25 to 50 or more
#mormonmurders 

Fremont Partners makes substantial equity investments in operating companies with enterprise values generally up to $1 billion, typically seeking to deploy $50 million to $250 million in each situation. The firm looks for companies with sound business franchises, substantial unrealized potential, and proven management teams. Fremont Partners invests across a range of industries, including business services, financial services, consumer products, industrial products, building products, packaging, and health care, among others. The fund seeks businesses with leading market positions, strong organic revenue growth supported by sustainable trends, attractive EBITDA margins, high returns on tangible capital, strong free cash flow, and substantial investment commitment from management.
“The strong growth in revenues, cash flow and earnings achieved by our existing portfolio companies in 2001 demonstrated the merits of our investment strategy and contributed to the success of fundraising,” added Mark Williamson, Managing Director.

Founded in 1991, Fremont Partners (www.caleracapital.com) has invested over $900 million in equity capital representing approximately $4 billion of transactions. Fremont Partners has a proven track record of working in close partnership with management to build sustainable value in each portfolio company.
Fremont Partners is sponsored by its investment professionals and Fremont Group. Fremont Partners is the principal entity through which Fremont Group conducts its private equity investing in established operating businesses. Fremont Group, a private investment firm, is majority owned by members of the Bechtel family and is responsible for managing approximately $11 billion in assets.