Shore Capital Partners, a private equity firm focused exclusively on the healthcare industry, has held the first and final close of its second institutional private equity fund, Shore Capital Partners Fund II, at the hard cap of USD190 million.
Fund II, raised in less than three months, surpassed its original target of USD150 million and was substantially oversubscribed with investor demand approaching USD750 million.
Fund II will continue the investment strategy employed by the Firm’s predecessor fund and invest primarily in control buyouts, focusing on microcap healthcare businesses.
With Fund II, Shore now manages a total committed capital base of approximately USD350 million.
Commitments to Fund II came from substantially all the firm’s existing investors, plus select new limited partners. Fund II attracted strong interest from many sophisticated institutions in North America, resulting in a diverse investor base comprised of leading university endowments, financial institutions, funds of funds and family offices. Additionally, the partners of Shore have committed to invest a substantial amount of capital alongside Fund II.
“We are humbled by the reception Fund II has received from such a highly-respected group of investors,” says Justin Ishbia, founder and managing partner of Shore Capital Partners. “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. We are grateful for the support of our limited partners and thank them for their commitment and trust in Shore.”
Shore Capital Partners has also promoted Chris Mioton to principal. Mioton joined Shore in 2015 and has been instrumental in value creation for the firm.
Shore invests in businesses with strong growth potential in favourable niche segments in healthcare services, medical products and consumer‐directed healthcare. Target investments range in size from USD1 to USD7 million in EBITDA. Shore targets equity commitments of USD10 to USD30 million per platform and grows companies through both organic initiatives and strategic acquisitions.
Shore’s partners, Justin Ishbia, Ryan Kelley, Mike Cooper, John Hennegan and Don Pierce, have been investing together since 2009, completing 50 acquisitions across 13 platforms.
Kirkland & Ellis served as legal adviser to Shore Capital Partners for the fundraising efforts.
