Longshore Closes Debut Fund, Stocks BPO Portfolio

Longshore Capital Partners has closed its debut private equity fund, Longshore Capital Fund I LP, with total and oversubscribed capital commitments of $203 million.

The new firm was formed earlier in 2020 by LaSalle Capital professionals Ryan Anthony and Nicholas Christopher. Investors in Fund I include asset management firms, insurance companies, funds-of-funds, family offices, and high net worth individuals.

“We are thrilled with the reception we received during the fundraising process,” said Mr. Christopher. “The portfolio has performed well during the Covid-19 pandemic and we are highly optimistic about its prospects.”

Chicago-headquartered Longshore makes control investments in North America-based companies with $5 million to $15 million of EBITDA. Sectors of interest include business process outsourcing (BPO), revenue cycle management, and managed services and payments.

“We are excited to launch our firm and drive attractive returns for our investor base by focusing on identifying asymmetric risk/return investment opportunities in the services sector,” added Mr. Anthony.

In tandem with the closing of Fund I, Longshore has acquired a controlling interest in five business services companies from LaSalle Capital.

  • MetaSource, a Utah-based provider of business process outsourcing services to financial services companies. LaSalle invested in MetaSource in November 2013.
  • Eclipse Advantage, a Florida-based provider of specialized warehouse services including in-bound receiving, pallet management, and order selection to companies in the foodservice and retail sectors. LaSalle invested in Eclipse in June 2012.
  • Gen3 Marketing, a Pennsylvania-based marketing agency that provides digital marketing services, including pay-per-click, search engine optimization, social media, and other digital marketing campaigns. LaSalle invested in Gen3 in December 2017.
  • Oakpoint, a North Carolina-based provider of non-clinical support services to dentistry and orthodontic practices. LaSalle invested in Oakpoint in September 2019.
  • Professional Recovery Consultants (PRC), a North Carolina-based revenue cycle management company serving hospitals and physician groups. LaSalle invested in PRC in August 2019.

To complete these acquisitions, Longshore partnered with Spring Bridge Partners, a specialist investor active in secondary transactions and spin outs of investment teams and portfolios from institutions and family offices. New York City-headquartered Spring Bridge is led by co-founders and partners Luca Salvato and Sebastien Burdel.

“Spring Bridge is uniquely positioned to help GPs in the middle-market that have reached a transition point and are seeking a creative, value-added capital partner to invest in their future,” said Mr. Burdel. “We very much look forward to the partnership with Longshore as Nick and Ryan build out their franchise.”

Longshore used Shannon Advisors as its placement agent for Fund I and Winston & Strawn provided legal services.

Private Equity Professional | August 28, 2020

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