Shore Capital Partners (Shore), a strategic private equity firm focused on microcap investing in the healthcare, food and beverage, business services, and real estate industries, with offices in Chicago and Nashville, has announced the first and only closings of its fourth institutional healthcare private equity fund, Shore Capital Healthcare Partners Fund IV (HC Fund IV), its first business services fund, Shore Capital Business Services Partners Fund I (BS Fund I), and its first real estate fund, Shore Capital Real Estate Partners Fund I (RE Fund I). HC Fund IV raised USD366 million, BS Fund I raised USD213 million, and RE Fund I raised USD107 million. With these respective closings totaling USD686 million, Shore now manages a total committed capital base of USD2 billion.
“We are thankful and appreciative of the response these funds received from a highly-distinguished group of investors,” said Justin Ishbia, Founder and Managing Partner of Shore Capital Partners. “Our limited partners appreciate our commitment to microcap investing and our ability to bring company founders and entrepreneursthe capital, business development expertise, and industry knowledge to drive transformational growth.”
“The microcap market continues to be underserved, which we are changing. Our playbook supports founders and entrepreneurs with oversized resources from our operations and investment teams,” added Ishbia. Following this strategy, Shore’s 2020 accolades include Inc. Magazine recognition as a Top 50 Founder Friendly private equity firm and ranking as Pitchbook’s most active private equity firm in the world.
Shore Capital Healthcare Partners Fund IV surpassed its original target of $300 million and was substantially oversubscribed. HC Fund IV will continue the successful investment strategy employed by the Firm’s partners Justin Ishbia, Ryan Kelley, Michael Cooper, John Hennegan, Don Pierce and Chris Mioton. HC Fund IV will invest primarily in control buyouts, focused on microcap healthcare businesses with revenues between $5 million and $100 million.
Shore Capital Business Services Partners Fund I, led by Justin Ishbia, Brad Morehead, Matt Sweeney, Rory Kenny and Mickey Jiang, surpassed its original target of $150 million and was also substantially oversubscribed. BS Fund I is focused on making control equity investments in B2B and B2C companies providing IT and technology-enabled services, compliance and risk management, environmental and waste services, facility and field services, financial and payment services, distribution and logistics services, and professional services. “The Business Services team is excited to build upon Shore’s impressive track record. Our proven value creation model will be a compelling choice for entrepreneurs and executives seeking growth and resources for their companies,” said Brad Morehead, Partner at Shore Capital.
Shore Capital Real Estate Partners Fund I, Shore’s newly established vehicle led by Justin Ishbia and Steve Malley, surpassed its original target of $75 million and was substantially oversubscribed. RE Fund I is focused on acquiring the real estate holdings of partner entrepreneurs by offering business owners a real estate succession option, cash liquidity, and rollover ownership on a tax deferred basis at the real estate platform level.
Commitments to HC Fund IV, BS Fund I and RE Fund I came from the firm’s existing investors, plus select new limited partners. All three funds attracted strong interest from numerous prominent investors, resulting in a diverse and sophisticated investor base comprised of leading university endowments, financial institutions, funds of funds and family offices. In addition, Shore’s partners have committed to invest a substantial amount of capital alongside all three funds.
Kirkland & Ellis LLP served as legal advisor to Shore Capital Partners for the fundraising efforts. Shore did not use a placement agent.