Shore Capital Partners has closed its inaugural Healthcare Advantage Fund, second Business Services Partners Fund (“Business Services Fund II”), and first Shore Search Partners Fund (“Search Fund”). The three new funds exceeded their targets and represent over $1.9 billion in combined capital commitments.
Commitments for Shore’s three new funds came from the firm’s existing investors and select new limited partners, which include university endowments, financial institutions, pension funds, insurance companies, funds of funds, and family offices.
“The completion of these fundraises reflects a continuation of our lower-middle market focus while also innovating for expansion opportunities through the Advantage and Search Funds,” said Justin Ishbia, a managing partner and founder at Shore. “Our commitment to value creation through outsized operational support has always been core to our strategy, and it will continue to be as we extend our investment range across the lower-middle market. We are grateful for the strong support from our existing limited partners and new strategic partners amidst a challenging economic backdrop.”
The Healthcare Advantage Fund is led by founding partners Mike Cooper and John Hennegan and invests in healthcare companies – medical devices, services, and education/training – with $5 million to $100 million of revenue and $1 million to $10 million of EBITDA.
The Business Services Fund, led by Partners Brad Morehead, Rory Kenny, Matt Sweeney, and Mickey Jiang, invests in lower middle market companies with $5 million to $50 million of revenue and $1 million to $7 million of EBITDA. Sectors of specific interest within business services include IT and tech-enabled services, professional services, compliance, security and risk management, software and data systems, environmental and waste services, facility and field services, and transportation and logistics.
“The strong support from our limited partners for our second Business Services Fund is indicative of our progress in Fund I, proven investment strategy, and discipline across attractive sectors,” said Mr. Morehead. “Pairing our business services experience with our rigorous thesis development process, we have narrowed in on industry niches we believe have the greatest potential for high-impact partnerships with founders and owners of small and medium-sized companies poised for accelerated growth.”
The Search Fund, led by Partner Michael Aubrey and Principals Jeff Smart, Jeff Smith and Jacob Balley, will focus on supporting executives pursuing acquisition opportunities. These executives will have access to Shore’s networks and resources to help them find, execute, and operate microcap companies.
A recent acquisition by Shore was the formation of Guidant Power in September as a new electrical safety platform. It acquired its first two businesses with the buys of Rozel Electrical Safety Consultants and BCH Safety. With the close of these acquisitions, Guidant Power is now a provider of electrical safety, reliability, and training services to companies across North America.
Guidant specializes in arc flash assessments and mitigation studies to help identify and reduce risks associated with electrical hazards. The company’s portfolio of training products includes various programs, such as electrical safety training, essential electrical skills development, and train-the-trainer programs. Shore partnered on the formation of Guidant with Paul Decker, the former CEO of ABP Induction, a producer of induction furnaces and heating systems used in the metallurgical industry. ABP was a portfolio company of Chicago-based CM Acquisitions and was sold to Mitsubishi Heavy Industries in 2019.
Shore Capital invests in lower middle-market healthcare, food and beverage, business services, industrial, and real estate-related companies with revenue of $5 million to $100 million and EBITDA of $1 million to $10 million. It is headquartered in Chicago and has an additional office in Nashville.
Kirkland & Ellis provided legal services to Shore for this fundraise, and the firm did not use a placement agent.
© 2024 Private Equity Professional | October 9, 2024
