Mosaic Closes Second ESOP-Focused Fund

Mosaic Capital Partners has closed its second fund with $205 million in total capital, including leverage. Similar to its first fund, Fund II is structured as a Small Business Investment Company (SBIC) with limited partners that include institutions, commercial banks, and high-net-worth individuals.

Mosaic invests from $10 million to $25 million—more with limited-partner co-investment—in North America-based employee-owned businesses with $10 million to $100 million in revenue and $5 million to $15 million in EBITDA. Sectors of interest include business services, consumer products, food and beverage, healthcare, industrials, manufacturing, technology services, and value-add distribution. Mosaic’s transactions generally involve ESOP buyouts, full or partial ESOPs, or ESOP recapitalizations.

“We are grateful for the overwhelming support from our existing investors and pleased to welcome several new institutional investors into the fund,” said Steve Buchanan, the managing partner of Mosaic.

Earlier this year, Mosaic closed an ESOP transaction with Ickler Electric, a San Diego-based provider of commercial electrical contractor services with a specialization in the life sciences and commercial laboratory sectors. Since its founding in 2014 and across its two funds, Mosaic has invested in 17 platform companies and now has total assets under management of $370 million.

“We are pleased to see the investor community continue to support Mosaic’s unique broad-based employee ownership model,” said Ian Mohler, a partner at Mosaic. “Our team is committed to finding the best investment opportunities for our investors and building long-term wealth for workers while delivering attractive investment returns.”

Winston & Strawn provided legal services to Mosaic on this fundraise.

Mosaic Capital Partners is headquartered in Charlotte, North Carolina.