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LightBay Capital raises USD615m for debut private equity fund

LightBay Capital (LightBay), a Los Angeles-based private equity firm focused on middle-market opportunities, has successfully completed fundraising for its inaugural institutional fund, LightBay Investment Partners, with total committed capital of USD615 million. 

The oversubscribed Fund, which LightBay officially began marketing in April 2017, exceeded its target of USD450 million with commitments from a diverse investor group, which includes leading family offices, foundations, fund of funds, insurers, pension plans, and LightBay professionals.

LightBay is led by cofounders Nav Rahemtulla and Adam Stein, who were original members of Ares Management’s private equity group (Ares) where they invested together for over 15 years. Prior to forming LightBay, Messrs. Rahemtulla and Stein led Ares’ Healthcare and Consumer & Retail industry groups, respectively.

LightBay invests in growing businesses primarily in the consumer, healthcare, and business services sectors. The Fund’s flexible investment strategy incorporates leveraged buy-outs, shared-control opportunities, and special situations, targeting investments between USD25 million and USD150 million.

“We could not be more pleased with the composition of our investor base and are grateful for their strong level of support and confidence in LightBay,” says Rahemtulla. “Adam and I are thrilled to continue our partnership with so many institutions who have been with us our entire careers. Together with our new limited partners, we look forward to enjoying continued success.”

Stein adds: “The flexibility of our capital base enables us to invest in high-quality companies in all market environments, and our strategy is well suited to take advantage of the disruption occurring across the consumer, healthcare, and business services sectors. We have built a terrific team with experience in business development, investing, and driving operational excellence, and are eager to partner with talented management teams and create meaningful value for our investors.”

UBS Private Funds Group acted as advisor and exclusive placement agent for LightBay. Kirkland & Ellis LLP served as legal counsel to LightBay.

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