New Harbor Beats Target
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New Harbor Beats Target

Lower middle market investor New Harbor Capital has closed its second private equity fund, New Harbor Capital Fund II, LP, with $265 million in capital commitments. The new fund was significantly oversubscribed and closed above the original target of $200 million and above the hard cap of $250 million. New Harbor closed its first fund in March 2015 with $146 million of capital.

New Harbor was co-founded in February 2013 by Tom Formolo and Ed Lhee, long-time Partners at CHS Capital, and is based in Chicago (www.newharborcap.com).

Investors in the Fund II include domestic and international pension funds, endowments, funds of funds, asset managers, family offices and high net worth individuals.  “We are deeply grateful for the near unanimous support of our Fund I investors and their continuing partnership with us in our second fund.  We are also excited about the variety of high caliber new investors that are joining us in Fund II,” said Mr. Formolo.

The strategy for Fund II will be unchanged from Fund I.  Specifically, New Harbor utilizes a research-based approach to identify opportunities where it can invest from $10 million to $40 million in lower middle market companies that have EBITDAs from $3 million to $15 million. Sectors of interest include healthcare, education, and business services.

“Both Fund I and Fund II included significant capital commitments from our team of Executive Advisors.  This team of 11 founders and former CEOs of private equity backed companies are vital to our success by providing us critical market insights, assisting in sourcing unique investments and supporting our portfolio companies and management teams,” said Mr. Lhee.

Kirkland & Ellis provided legal services to New Harbor on this fundraise.

© 2017 Private Equity Professional | June 7, 2017

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