McCarthy Beats Target

Omaha-based McCarthy Capital has held a final, oversubscribed, and above target closing of McCarthy Capital Fund VII LP with $535 million of capital. The firm’s earlier fund, McCarthy Capital Fund VI LP, closed in April 2016 with $353 million of capital. Fund VII had an original target of $425 million.

McCarthy Capital makes control or substantial minority investments of $15 million to $75 million in profitable companies that have revenues of at least $15 million. Transaction types include growth equity investments, management buyouts and recapitalizations. The firm was founded by Michael McCarthy in 1986 and has invested in over fifty companies, including Cabela’s, Peak 10, Guild Mortgage Company, and Vornado Air. Today, the firm has approximately $1.5 billion in capital under management and is based in Omaha with an additional office near Boston in Wellesley, Massachusetts.

“We are pleased to announce the closing of Fund VII,” said Patrick Duffy, president and managing partner of McCarthy Capital. “We are thankful for the continued support of our long-term partners as well as the opportunity to partner with new institutional investors, all of whom enabled us to complete this capital raise quickly.”

In January 2020, McCarthy Capital, after nearly a six-year hold, sold TriMech, a Richmond, Virginia-based provider of computer-aided design and engineering software, 3D prototyping and digital manufacturing equipment, to The Halifax Group.

“We look forward to partnering with outstanding management teams desiring to accelerate their business,” added Mr. Duffy. “McCarthy Capital’s experienced team of professionals will seek to execute on our well-defined model to identify and drive value-add initiatives within our partnerships.”

Lazard provided placement agent services to McCarthy Capital on this fundraise, and Kirkland & Ellis provided legal services.

Private Equity Professional | August 18, 2020

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