Oversubscribed funds mark firm’s entry into industrials and continuation of its flagship healthcare strategy
CHICAGO, July 13, 2023–(BUSINESS WIRE)—Shore Capital Partners, (“Shore” or the “Firm”), a private equity firm focused on microcap investments, today announced the closing of its inaugural Industrial fund, Shore Capital Industrial Partners Fund I (“IND Fund I”), and its fifth healthcare fund, Shore Capital Healthcare Partners Fund V (“HC Fund V”). With the addition of the two funds, which closed within three months and total over $643 million, Shore now has over $6 billion assets under management and additional entities to which it provides business and operational services.
“The close of the new healthcare and industrial funds is a testament to the team’s established ability to identify industry niches poised for growth,” said Shore Founder and Managing Partner Justin Ishbia. “Partnering with premier management teams with a focus on long-term success has always been our highest priority and we will continue to double-down on our commitment to providing operational resources to the companies we partner with. I am immensely proud of the team that has helped to grow Shore into the firm it is today, and we look forward to welcoming more business owners to the Shore family and partnering with them in an effort to deliver transformational results.”
IND Fund I is led by Shore Founder and Managing Partner Justin Ishbia and Partners and Co-Heads of Industrials John Sznewajs and Dan Spradling. Expanding the Firm’s successful, thesis-driven microcap investment strategy into the industrials sector, the team will primarily focus on investing in aerospace and defense, building and facility services, transportation and logistics, environmental services, manufactured products/services, and industrial technology companies that have between $5 million and $100 million in revenue. IND Fund I surpassed its original target of $150 million and was substantially oversubscribed.
“The industrial sector is highly fragmented, and we believe it’s a target-rich environment with strong growth potential,” said Sznewajs. “While the new fund represents Shore’s formal entry into the industry, the team’s prior experience investing in similar businesses will inform our approach and accelerate our ability to drive growth in new industrial investments.”
“Shore’s investment playbook – bringing together robust management, a world-class board of directors and a top-down investment approach – has been time tested, and we look forward to applying it across the attractive Industrial niches that we identify,” said Spradling.
HC Fund V is also led by Justin Ishbia, along with Shore Founding Partners John Hennegan, Ryan Kelley and Mike Cooper, and Partners Don Pierce and Chris Mioton. HC Fund V will enable the Firm to build upon its strong track record of investing in microcap healthcare businesses and partner with companies across a variety of healthcare subsectors that have between $5 million and $200 million in revenue. HC Fund V also surpassed its original target of $350 million and was substantially oversubscribed.
“The healthcare industry has proven to be resilient throughout market cycles, and we believe there is ample opportunity to continue improving the patient, provider, and payor experience within the healthcare ecosystem,” said Kelley. “We are energized by the momentum we see in the market, and we are grateful to our partners who have entrusted our skilled team of investment and operational professionals to help take their businesses to the next level.”
Commitments to both IND Fund I and HC Fund V came from the Firm’s existing investors and select new limited partners, resulting in a diverse investor base comprised of university endowments, financial institutions, fund-of-funds and family offices. The partners of Shore have also committed capital to both funds.
Shore’s strategy is to help microcap businesses grow faster with less risk, through access to capital, world-class board and operational resources, and unmatched networking and development opportunities. Since its inception, Shore has rapidly grown its investment and operational support teams and invested in 56 unique platform companies, with an incremental 800 plus add on acquisitions. Today, Shore’s portfolio of companies span across approximately 1,500 locations and over 31,000 employees, and the firm has over 130 team members between its Chicago and Nashville offices.
Kirkland & Ellis LLP served as a legal advisor to Shore for the fundraising efforts. Shore did not use a placement agent.
About Shore Capital Partners
Shore Capital, a Chicago-based private equity firm with offices in Nashville, is an investor in microcap companies in the healthcare, food and beverage, business services, industrial, and real estate industries. Shore’s strategy is to support management partners to grow faster with less risk, through access to capital, world-class board and operational resources, and unmatched networking, development, and shared learnings across the portfolio. For the third consecutive year in 2022, Shore received recognition from Inc. Magazine as a top founder-friendly investor, and by Pitchbook research for leading all U.S. Private equity firms in total deal volume. Shore targets investments in established, successful private companies with premier management teams, stable cash flow, and significant potential to grow through industry consolidation and organic growth to generate value for shareholders. Shore has over $6 billion of assets under management and in additional investment platforms to which it provides business and operational services. For more information, including with respect to these awards and investment platforms, please visit: www.shorecp.com.
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