Plexus Capital, a North Carolina-based private investment firm focused on the U.S. lower middle market, announced the final closings of two new funds—Plexus Fund VII and Plexus Equity Fund II, totaling over $1.3 billion in committed capital.
Both funds closed ahead of schedule and exceeded their initial fundraising targets, marking another milestone in Plexus’ 20-year track record of partnering with profitable small and midsize businesses.
Plexus Fund VII raised $977 million in total capital, surpassing its $750 million target within just five months from first close to final close. The new fund continues the firm’s structured capital strategy, which provides a combination of debt and minority equity investments to support the growth of companies generating between $10 million and $100 million in annual revenue and $2 million to $12 million in EBITDA.
Fund VII will maintain Plexus’ longstanding approach of collaborating with independent sponsors, search funds, private equity firms, and management teams seeking flexible, non-control capital solutions.
Plexus Equity Fund II, the firm’s second control buyout vehicle, reached its hard cap of $345 million, which is well above its $250 million target, in a fundraising process that was just three months.
The fund continues Plexus’ thesis-driven buyout strategy introduced in 2021, focusing on companies in business services and essential industries. Equity Fund II plans to deploy between $15 million and $40 million in equity per investment, acquiring controlling stakes and partnering with management teams to scale operations and drive long-term value creation.
The strong investor response to both funds reflects confidence in Plexus’ investment discipline, consistent performance across market cycles, and deep relationships within the lower middle market. And the firm’s emphasis on transparent communication and partnership-driven investing has helped it maintain enduring relationships with portfolio company management teams and institutional investors.
Founded in 2005, Plexus Capital has become one of the most established investors in its segment, managing billions in capital across structured credit and equity strategies. The firm’s dual-fund approach allows it to serve a wide range of capital needs—from non-control growth financing to complete acquisitions, while maintaining a focus on backing proven, profitable small businesses across the U.S.
KEY QUOTES:
“Plexus is proud of the long-term relationships built with our investors and portfolio company management teams, as well as the culture we’ve established over our 20-year history, which centers on transparency, accountability, and following through on our commitments. Combined with our disciplined investment approach and track record across market cycles, this partnership mentality seemed to resonate with our investors in a challenging fundraising environment. We are grateful for the overwhelming support from our existing investors and pleased to welcome several new institutional investors in both funds.”
Alex Bean, Partner at Plexus Capital
