Mountaingate Capital has held an above-target, oversubscribed, and hard cap close of its third lower-middle-market private equity fund, Mountaingate Capital Fund III LP with $570 million in capital commitments. Mountaingate raised the new fund in just under three months.
The firm’s investor base for Fund III includes university and nonprofit foundations, global insurance companies, pension systems, and both domestic and international asset management firms.
“We are grateful for the tremendous support from both our existing and new investors, which enabled us to complete such an efficient fundraise,” said Bennett Thompson, a co-founder and managing director at Mountaingate. “The successful closing of Fund III allows Mountaingate to continue focusing on our disciplined investment process, backing founders and entrepreneurs to drive transformational growth.”
Denver-headquartered Mountaingate employs a founder-focused investment strategy and targets businesses in the marketing services, business services, specialty manufacturing, and distribution sectors.
“We believe our fundraising success speaks to the quality of the team we have built over the past ten years, as well as the successful partnerships we have developed with our portfolio company leadership teams,” concluded Mr. Thompson.
In September 2024, Mountaingate completed the sale of Mars United Commerce, a Michigan-based, tech-enabled, and analytics-driven marketing services platform, to Publicis Groupe. Mountaingate had initially partnered with Mars and its leadership team—Founder and Chairman Ken Barnett and CEO Rob Rivenburgh—in 2021, when the company employed approximately 450 individuals. By the time of the sale, Mars had grown to a workforce of over 1,000 employees.
For Fund III, Mountaingate utilized Atlantic-Pacific Capital as its placement agent, and Kirkland & Ellis provided legal services.
With the closing of Fund III, Mountaingate’s total assets under management now exceed $1.4 billion.
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