Grand Rapids-Based Charter Capital Raises Over $21 Million For Growth Capital Fund

By Amit Chowdhry ● August 11, 2019
  • Grand Rapids, Michigan-based investment bank and capital management firm Charter Capital Partners announced it raised over $21 million

Charter Capital Partners — a Grand Rapids, Michigan-based investment bank and capital management firm — recently announced the first closing of the Charter Growth Capital Fund with a total of more than $21 million in commitments on its way to a target raise of $100 million. Anchor investors in the fund include Mercantile Bank of Michigan and a strategic institutional investor as well as several family offices and individual investors.

The Charter Growth Capital Fund invests up to $5 million of mezzanine debt and/or equity capital in lower middle-market companies in the Great Lakes region to support growth, succession, or recapitalizations. And the fund’s flexible capital solution fills an underserved market. The fund will focus primarily on business services, distribution, healthcare, industrial services, and manufacturing companies.

Charter Capital Partners president and managing partner John Kerschen launched the venture firm more than a decade ago. With over 40 investments, Charter has sourced, financed, and managed more than $220 million in private capital. Hector Bultynck (Managing Director) and Michael Palm (Director) are joining Kerschen to oversee the fund.

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Bultynck is a Detroit native who spent 19 years Peninsula Capital Partners where he was partner investing five funds totaling more than $1.5 billion. And Palm — a Grand Rapids native — brings 14 years of finance experience at private equity firms Driehaus Private Equity and Beecken Petty O’Keefe and Company.

“Our team has an incredible track record of closing deals both within the Great Lakes region and within the target-rich, lower middle market, making us uniquely qualified to deliver value to both our portfolio companies and our investors,” said Kerschen in a statement. “Our team is also fortunate to be supported by a robust professional network that provides strong deal flow, enabling us to expeditiously pinpoint investment opportunities that best match our criteria.”

The Charter Growth Capital Fund is cultivating potential portfolio companies in parallel with fundraising and is expecting to announce its first investment before the end of the third quarter.

“Our ability to secure this initial close demonstrates confidence that investors support our vision and investment thesis,” added Bultynck. “We look forward to delivering top-tier returns to our investors via a unique vehicle that complements their current portfolio of investments.”

Charter Private Capital Management is a Registered Investment Adviser (RIA) and professionally manages numerous venture capital funds and private investment vehicles, including Michigan Accelerator Fund I, MAF Opportunity Fund, Charter Growth Capital Fund, and multiple Special Purpose Entities.