Shore Capital Partners Raises $190M For Oversubscribed Second Fund

Apr 4 2017 | 9:22pm ET

Healthcare industry investor Shore Capital Partners has raised $190 million in capital commitments for its second fund, handily beating its original target of $150 million. 

The new fund, named Shore Capital Partners Fund II, was heavily oversubscribed and closed at its hard cap less than three months after coming to market, the company said in a statement. Investor demand for Fund II approached $750 million, Shore added. 

Like its predecessor, which raised $113 million in June 2014, Fund II will invest primarily in control buyouts, focusing on microcap healthcare businesses with $1 to $7 million in EBITDA and equity commitments of $10 to $30 million per platform. Investors include leading university endowments, financial institutions, funds of funds and family offices, as well as a substantial capital investment from Shore’s partners.

“We are humbled by the reception Fund II has received from such a highly-respected group of investors,” said Justin Ishbia, founder and managing partner of Shore Capital Partners, in the statement. “Fund II will allow us to continue our strategy of investing in companies in growth healthcare sectors that will benefit from our operating expertise and deliver outstanding returns to our investors.”

Kirkland & Ellis LLP served as legal advisor to Shore Capital Partners for the fundraising efforts, the company added. No placement agent was used.

Founded in 2009, Chicago-based Shore Capital Partners manages approximately $350 million of equity capital through various investment vehicles. The company’s partners –Ishbia, Ryan Kelley, Mike Cooper, John Hennegan and Don Pierce - have been investing together since 2009 and have completed 50 acquisitions across 13 platforms.

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