Seven Hills Capital announced the first-and-final closing of its oversubscribed sophomore fund, Seven Hills Capital Fund II, L.P., reaching its $235 million hard cap in less than three months. The closing follows the firm’s $125 million Fund I raise completed two years ago.
Founded in 2016 and based in Nashville, Seven Hills is an operator-centric lower middle market private equity firm focused on thematic niches within healthcare services. The firm works alongside its partner companies and CEOs, taking a hands-on approach to building businesses aimed at improving outcomes for patients, payors, and providers.
A core component of the firm’s model is its Strategic Performance Group, an internal operating team designed to accelerate partner company development through enhancements to operational systems and growth initiatives. The group supports revenue cycle management, financial reporting, system conversions, acquisition integration, strategic planning, and de novo growth. Seven Hills said the team leverages Nashville’s healthcare ecosystem and local subject matter experts to support portfolio companies.
Fund II attracted capital from a range of institutional limited partners, including college and university endowments, mission-driven foundations, single and multi-family offices, and outsourced CIOs. Pacenote Capital served as exclusive placement agent for both Fund I and Fund II, and McGuireWoods provided legal counsel in connection with the fundraising.
KEY QUOTES
“We built SPG to bring institutional-level resources to entrepreneurial businesses — without losing the culture that made them successful. Nashville’s vibrant healthcare and entrepreneurial ecosystem has allowed SPG to be built with local subject matter experts working alongside SHC’s investment team and Partner Companies.”
Matthew Pettit, Founder Of Seven Hills Capital
“We are humbled to have received such strong support from new and existing investors who share our enthusiasm for building best-in-class healthcare businesses.”
Matthew Pettit, Founder Of Seven Hills Capital
“We are grateful for the outstanding work by Pacenote, both in identifying exceptional long-term investors to support our mission and for their conviction in us as investors.”
Matthew Pettit, Founder Of Seven Hills Capital
