Gainline Capital Partners has held a final, above target, oversubscribed, and hard cap close of its second fund, Gainline Equity Fund II LP, with $400 million in capital. The fund’s original target was $300 million. Gainline’s earlier fund, Gainline Equity Fund LP, closed in 2019 with $155 million in capital.
Fund II received broad institutional support, with every institutional investor from Fund I returning to invest in Fund II and a variety of new institutions joining as limited partners.
“We are thrilled and fortunate to have the continued support of such a distinguished group of limited partners coupled with new, well-known, well-regarded partners, many of whom had been tracking our progress through the deployment of Fund I,” said Allan Weinstein, Gainline’s co-founder and managing partner. “It is a powerful endorsement of our investment strategy.”
Gainline invests in United States-based businesses that have enterprise values of less than $250 million and EBITDA from $5 million to $50 million. The firm specializes in first institutional capital opportunities and its sectors of interest include business services, niche manufacturing, consumer, logistics and transportation services.
Fund II has already invested $106 million of capital in two companies: Galaxy Universal, a New York City-based wholesaler, sourcing and brand management company, focusing on the athletic, work and outdoor categories (2021); and Harvest Right, a Salt Lake City-based producer and distributor of in-home freeze dryers (2023).
With the final close of Fund II, Gainline now has a total of $1.3 billion of assets under management across its two funds along with several co-investment vehicles.
“We have quickly become a partner of choice for founders, entrepreneurs, and family businesses who are prioritizing partnership,” said Rick Sullivan, a Gainline partner and co-founder. “We continue to find exciting opportunities where business owners are recognizing the importance of collaboration, thoughtful alignment, and the merits of building long-term value appreciation with an experienced sponsor. The transition of a closely held or family business or a carve-out into a strong stand-alone institutional quality investment requires deep experience. Our success is a function of our transparent working environment and commitment to fostering a team culture of sound and reasoned judgment, technical proficiency, and thoughtfully aligned partnerships.”
Credit Suisse was the placement agent for Fund II and Willkie, Farr & Gallagher provided legal services.
Gainline was founded in 2015 by Mr. Weinstein and Mr. Sullivan, and is headquartered in Stamford, Connecticut.
© 2023 Private Equity Professional | July 25, 2023
