Piper Jaffray of Minneapolis said Wednesday it closed fund-raising at $130 million for its newest investment fund.
The investment bank also said the new fund, called Piper Jaffray Merchant Banking Fund II, has chosen the first three companies, including Minneapolis-based Foodsby, to receive investments from the fund. Foodsby operates an online meal ordering system that focuses on consumers ordering lunch from the office.
The new fund has also invested in Cafe Rio, a fast-casual Mexican restaurant chain with more than 100 locations, and HemaSource, a provider of software and data services to plasma collection companies.
Piper said the fund plans to invest up to $15 million per company and will focus on rising firms in healthcare, technology, business services, financial technology and consumer products. It is not looking at startups or early-stage firms but those that will produce liquidity within three to five years.
The fund is led by Piper managing directors Ted Christianson, Bob Rinek and Tom Schnettler.
Piper's two previous Merchant Banking funds raised and deployed about $145 million in investments. Those funds invested in 25 companies,13 of which produced exit events for investors. They included Minneapolis-based Sport Ngin, a digital services provider for youth sports leagues that was sold to Comcast NBC Sports.