New Heritage Capital has held an above target and oversubscribed closing of its fourth fund, New Heritage Capital IV LP, with $438 million in capital.
Fund IV’s limited partners include North America and Europe-headquartered consultants, endowments, insurance companies, public pensions, family offices, asset managers and funds of funds.
“We are grateful for the strong support and continued partnership from both our existing and new investors, particularly in such a challenging fundraising environment,” said Mark Jrolf, a co-founder and managing senior partner at Heritage. “We believe that our strategy of partnering with successful founders through our innovative Private IPO structure will continue to create market differentiation, accelerate growth and drive returns across our portfolio.”
“Our Private IPO partnership model is very relevant in today’s market,” said Charlie Gifford, a co-founder and senior partner at New Heritage. “By offering up to 50% in continued ownership, we provide owners with the opportunity to realize significant liquidity today while participating meaningfully in the future growth in their company’s value.”
Boston-based New Heritage invests from $15 million to $40 million of minority or majority equity in companies with $4 million to $20 million of EBITDA. Sectors of interest include business services, healthcare, and manufacturing.
In March 2023, New Heritage sold medical device manufacturer Rhythmlink International to Graham Partners. Rhythmlink is a South Carolina-headquartered manufacturer of single-use neurodiagnostic electrodes that are used to identify, elicit, and record neurophysiological signals. New Heritage invested in Rhythmlink in 2019.
“We have built our organization around a culture of collaboration, and we are proud of our team, the founders and CEOs we work with and the value we’ve created for our investors,” said Nickie Norris, a co-founder and senior partner at Heritage.
With the closing of Fund IV and since its founding in 2006, Heritage has now raised approximately $1 billion in committed capital and invested in more than 15 platform companies and 30 add-on acquisitions.
Harris Williams was the placement agent for Fund IV and Latham & Watkins provided legal services.
© 2023 Private Equity Professional | December 6, 2023
