SkyKnight Capital has closed its fifth flagship buyout fund with $2bn of capital commitments, significantly exceeding its $1.5 billion fundraising target as investor appetite for middle-market private equity strategies remains resilient, according to a report by Connect Money.
The oversubscribed vehicle, SkyKnight Capital Fund V, held its final close on 1 July and attracted commitments equivalent to three times its target in less than six months, according to the firm.
The successful raise increases SkyKnight Capital’s assets under management to approximately $6.5bn and marks a doubling in size from its predecessor fund. The firm’s fourth flagship vehicle closed on $1bn in 2023.
Fund V also secured more than 100% net retention from existing limited partners, highlighting continued support from the firm’s investor base despite a challenging fundraising environment for the wider private equity industry.
The new capital will be deployed across North American middle-market companies operating in healthcare, financial services and technology-enabled services, sectors that have remained attractive to buyout firms due to their defensive characteristics and long-term growth prospects.
Matthew Ebbel, managing partner at SkyKnight Capital, said the fund is expected to invest in around a dozen portfolio companies, partnering with management teams and business owners to support long-term growth.
Founded in 2015 and headquartered in Burlingame, California, SkyKnight Capital has completed approximately 23 platform investments. Its portfolio companies have collectively executed more than 100 add-on acquisitions, reflecting the firm’s buy-and-build investment strategy.
