L Squared Hard Caps $2 Billion Fifth Fund

L Squared Capital Partners has closed its fifth private equity fund, L Squared Capital Partners V LP, at its $2 billion hard cap.

Fund V was significantly oversubscribed and more than doubles the size of the firm’s fourth fund which closed in November 2023 with $840 million in capital. L Squared’s third fund closed in September 2020 with $505 million of capital.

Limited partners in Fund V include state pension funds, family offices, insurance companies, sovereign wealth funds and fund-of-funds, as well as institutional investors in Asia and Europe.

L Squared invests from $50 million to $125 million of equity in North America-based companies that have revenues of $20 million to $125 million and EBITDA of $5 million to $30 million. Sectors of interest include tech-enabled services and software, education technology, and industrial technology and services. L Squared expects to invest Fund V in nine to ten new platform investments alongside additional add-on acquisitions.

“We are deeply appreciative of the enthusiastic support from our longstanding partners and the strong interest from a broad range of new institutional investors,” said Rob Healy, co-founder and managing partner. “The significant oversubscription of Fund V enabled us to execute a first and final close efficiently while remaining disciplined in both fund size and investor selection. This outcome reflects the consistency of our strategy, our focus on partnership, and our ability to invest wisely across market cycles.”

Eaton Partners, a Stifel company, was the exclusive placement agent for this fundraise. “What L Squared has achieved with Fund V is truly exceptional,” said Eric Deyle, managing director and global co-head at Eaton Partners. “In a fundraising environment that remains incredibly challenging, the speed and scale of this first and final closing stand out. The overwhelming demand we saw speaks directly to the market’s confidence in the L Squared team and their unique, long-term approach to value creation.”

In addition to the hard cap close of Fund V, L Squared has also announced the closing of a single-asset continuation fund for BTX Precision led by HarbourVest Partners.

BTX Precision is a maker of components and assemblies used in aerospace and defense, space, medical, automation and robotics, and semiconductor applications. The company’s capabilities include milling, turning, laser micro-machining, advanced 3D metal printing and aluminum vacuum brazing, as well as electrical discharge machining and precision cleaning.

The BTX platform, headquartered near Chicago in Elk Grove Village, was formed in February 2024 by L Squared to consolidate several investments it had made in the highly fragmented North American precision components sector. The platform began in June 2023 with the acquisition of ERA Industries. Numerous other acquisitions followed with the buys of Gen El Mec Associates (August 2023), I3D Manufacturing (October 2023), Numerical Precision Industries (May 2024), Precision Aero (October 2024), Addison Precision Manufacturing (December 2024), A-1 Jay’s group composed of A‑1 Jay’s Machining, A‑1 Jay’s Sheet Metal, Inotech Laser, Bay Area Grinding, and Silicon Valley Precision Cleaning (December 2024), Chandler Industries (January 2025), and High Tech Solutions (August 2025).

“This transaction reflects our strong conviction in BTX’s long-term growth trajectory, and the value creation achieved to date,” said Randall Hunt, a managing partner of L Squared. “The continuation vehicle allows us to deliver liquidity to L Squared Fund III investors while extending our partnership with BTX’s exceptional management team to continue our acquisition-led thesis.”

Newport Beach, California-based L Squared is led by managing partners Rob Healy, Sean Barrette, Randall Hunt, and Adam Kimura, who have worked together for nearly two decades. The firm said it plans to continue expanding its team while incorporating AI-enabled capabilities to improve efficiency and productivity.