Shore Capital Partners – a private equity firm focused on lower-middle market investments – announced the closing of its inaugural Healthcare Advantage Fund, second Business Services Partners Fund, and first Shore Search Partners Fund. These three funds each exceeded their targets and together represent over $1.9 billion in commitments, bringing the firm’s assets under management to $9.1 billion.
Headed by Founding Partners Mike Cooper and John Hennegan, the Advantage Fund builds on the Firm’s successful track record of developing strong, well-positioned companies. And the Healthcare Advantage team will leverage its healthcare expertise to invest in businesses that fit its existing buy-and-build strategy.
Along with targeting attractive healthcare niches, the team will focus on opportunities to expand and continue partnerships with breakout businesses within its lower-middle market healthcare portfolio. The team’s value creation strategy includes supporting top executives with notable board talent, operational resources, and collaboration opportunities with Shore’s network of companies and executives.
The Business Services team is headed by Partners Brad Morehead, Rory Kenny, Matt Sweeney and Mickey Jiang. Building on established sector experience, the Business Services team will focus on investment opportunities in lower middle market companies across 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 Search Fund is headed by Partner Michael Aubrey and Principals Jeff Smart, Jeff Smith and Jacob Balley. And with Shore’s established playbooks and recognized brand in sourcing, negotiating and executing microcap transactions, the Search team will focus on supporting executives pursuing acquisition opportunities in the traditional Search investment range. Search executives will have access to Shore’s extensive network and resources to help them find, execute and operate microcap companies. Breakout companies will have the potential to become Shore microcap fund investments.
The commitments for the three funds came from the firm’s existing investors and select new limited partners, resulting in a diverse investor base comprised of leading university endowments, financial institutions, pension funds, insurance companies, funds of funds, and family offices. The partners of Shore have also committed capital to the funds.
Kirkland & Ellis served as a legal advisor to Shore for the fundraising efforts. Shore did not use a placement agent.
KEY QUOTES:
“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. 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.”
-Justin Ishbia, Shore Founder and Managing Partner
“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. 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.”
-Partner Brad Morehead
