Sky Island Capital, a private equity firm based in Dallas that specialises in the lower middle market, has closed its second fund, Sky Island Capital II LP (Fund II), surpassing its original target of $225m, and securing $300m in capital commitments.
Investors include both returning and new, high-quality limited partners, including insurance companies, foundations, family offices, endowments, and fund of funds.
Founded in 2018, Sky Island focuses on collaborating with privately held manufacturing companies across North America, applying a hands-on operational approach to drive post-acquisition value.
The firm has partnered with the family owners of 17 manufacturing businesses spanning various sectors, including aerospace & defence, building products, consumer goods, food & beverage, industrial products, metals, and packaging.
“We are thrilled to have closed our second fund above our original $225m target and appreciate the ongoing support from our returning investors and the confidence of our new limited partners,” said Jack Waterstreet, Managing Partner at Sky Island Capital.
“Sky Island was born out of the desire to work alongside entrepreneurs and family business owners to serve as a resource and strategic partner with one goal in mind – growth. This milestone enables our team to continue providing long-term value for our various stakeholder groups.”
Eaton Partners, a Stifel Company, acted as the exclusive placement agent, and Jones Day served as legal counsel for the Fund.
