Sky Island Beats Target on Fund II
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Sky Island Beats Target on Fund II

The Dallas-headquartered firm invests in North America-based manufacturing companies that have revenues of $10 to $200 million and EBITDA of $5 to $15 million

Sky Island Capital has held an above target and final close of its second private equity fund, Sky Island Capital II LP, with $300 million in capital commitments.

Limited partners in Fund II consist of both new and returning investors, such as insurance companies, family offices, endowments, and funds of funds.

Sky Island invests from $10 million to $50 million of equity in North America-based manufacturing companies that have revenue of $10 million to $200 million and EBITDA of $5 million to $15 million. Sectors of interest include aerospace and defense; auto and transportation; building products; consumer products; food and beverage; industrial products; metals; packaging; and specialty chemicals. To date, Sky Island has invested in 17 manufacturing businesses since its founding in 2018.

“We are thrilled to have closed our second fund above our original $225 million target,” said Jack Waterstreet, the managing partner of Sky Island. “This milestone enables our team to continue providing long-term value for our various stakeholder groups.”

A recent acquisition by Sky Island is the July 2024 buy of Pacific Paper Tube (PPT), a manufacturer of paper tubes and cores used in the industrial, construction, and packaging sectors including for transporting materials, forming concrete architectural columns, and packaging and selling consumer goods. PPT is headquartered in Stockton, California and has three additional facilities in Washington, Oregon, and Nevada.

Sky Island used Eaton Partners as its placement agent for this fundraise. “Sky Island is well-positioned to take advantage of what we believe is a unique time in the North American manufacturing market with untapped growth potential,” said Ryan Still, a managing director at Eaton Partners.

Dallas-headquartered Sky Island takes its name from a term coined by American naturalist, writer, and conservationist Natt Dodge in 1943, referring to a “mountain island in a desert sea.” Today, the term is used to describe an individual mountain, often above the clouds, surrounded by lowlands. Sky Island strives to ensure that each of its portfolio companies becomes its own “sky island.”

© 2025 Private Equity Professional | January 21, 2025

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