Opportunistic private credit investment firm Harlan Capital Partners announced the closing of Harlan Special Opportunities Fund V LP (HSOF V) and its associated vehicles, raising about $130 million. This new funding surpasses the predecessor HSOF IV, which raised approximately $115 million.
HSOF V attracted a diverse investor group, including family offices, high-net-worth individuals, wealth management firms, fund-of-funds, and nonprofit endowments. And these investors share Harlan Capital’s vision of providing flexible capital solutions to niche and emerging companies and assets that have a low correlation to mainstream markets.
This fund seeks to identify and exploit market inefficiencies by leveraging Harlan Capital’s proprietary network and extensive market expertise. And it focuses on non-traditional companies, borrowers, and asset types across diverse sectors like media, technology, telecommunications, and specialty finance. This approach is believed to position Harlan Capital as a leader in providing tailored financial solutions to underrepresented markets.
Harlan Capital is investing HSOF V’s capital in high-growth industries like technology, media, and intellectual property. Some notable investments include:
- Connext Networks – A fiber-to-the-home network targeting over 100,000 homes in the Interstate 15 corridor outside Salt Lake City.
- Collective Ace Group – A video game aggregator acquiring and operating leading independent video game development studios and game IP.
- Gray Cube Sports – A specialty finance platform offering structured credit to soccer teams collateralized by non-traditional revenue streams such as player transfer fee receivables.
- Augusta Distillery – Kentucky Bourbon inventory finance facility partnered with the distillery that won Best Bourbon in the World for 2023 at the San Francisco World Spirits Award.
The firm also believes the pullback in bank financing, rising interest rates, and increasing demand to monetize intellectual property make the closing of HSOF V timely. With 13 years of experience investing in niche alternative assets and lower middle market companies, Harlan Capital believes it is well positioned to navigate and succeed in the current market environment.
KEY QUOTE:
“We are thrilled to have raised $130 million for HSOF V, which we feel reflects our commitment to sourcing and investing in niche alternatives. We believe our deep experience in private credit enables us to navigate and capitalize on the current market landscape and provide our investors with unique opportunities that are uncorrelated to mainstream markets. We look forward to the opportunities ahead and remain committed to identifying and investing in unique and underrepresented markets.”
- Josh Harlan, Founder and Managing Partner of Harlan Capital
