Southfield Beats Hard Cap on Fund IV

Southfield Capital has held a final close of its fourth fund, Southfield Capital IV LP, with $560 million in capital commitments. Fund IV closed above its original hard cap as a result of strong demand from both returning and new institutional investors across the United States and abroad.

Institutional limited partners in Fund IV include family offices, consultants, pension funds, insurance companies, and fund-of-funds. The firm’s earlier fund, Southfield Capital III LP, closed in April 2021 with an oversubscribed and above-hard-cap $303 million in capital.

“We are grateful for the continued trust and support of our limited partners, both returning and new. The successful closing of Fund IV is a testament to the strength of our investment strategy and the caliber of our team,” said Andy Levison, the managing partner at Southfield Capital. “We remain committed to partnering with outstanding management teams to unlock significant value through digital transformation and strategic growth to deliver exceptional returns for our investors.”

Fund IV will be actively investing in entrepreneur-led, lower middle market outsourced business services firms operating in fragmented industries with high growth potential. Post-acquisition, Southfield Capital will emphasize operational scaling and strategic acquisitions to create shareholder value.

A recent example of Southfield Capital’s acquisition strategy is its July 2024 purchase of TFS, an Ohio-based provider of outsourced fleet management services for material handling equipment. Serving more than 100 customers across 2,100 sites nationwide, TFS specializes in forklifts, automated guided vehicles (AGVs), and other logistics assets. The company also operates OnPoint Capital, a financing and leasing subsidiary that connects vendors and end-users with financial institutions to support equipment procurement.

Southfield Capital makes control investments of $20 million to $80 million in companies that are active in the outsourced business services sector and have EBITDA of $4 million to $20 million. Sectors of specific interest include building, facility and real estate services; financial and insurance services; industrial services; IT services; professional services; and transportation and logistics. Southfield Capital was founded in 2005 and is headquartered in Greenwich, Connecticut.

Southfield Capital used Atlantic-Pacific Capital as its placement agent for this fundraise.

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