Shore Capital Partners, 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 closed its fourth institutional healthcare private equity fund, Shore Capital Healthcare Partners Fund IV, its first business services fund, Shore Capital Business Services Partners Fund I, and its first real estate fund, Shore Capital Real Estate Partners Fund I. HC Fund IV raised $366 million, BS Fund I raised $213 million, and RE Fund I raised $107 million. These respective closings totaled $686 million.
“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 entrepreneurs the capital, business development expertise, and industry knowledge to drive transformational growth.”
Shore Capital Healthcare Partners Fund IV surpassed its original target of $300 million and was oversubscribed. HC Fund IV will continue the investment strategy employed by the firm’s partners 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 Ishbia, Brad Morehead, Matt Sweeney, Rory Kenny and Mickey Jiang, surpassed its original target of $150 million and was also 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 Morehead.
Shore Capital Real Estate Partners Fund I, Shore’s newly established vehicle led by Ishbia and Steve Malley, surpassed its original target of $75 million and was 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 had an investor base comprised of university endowments, financial institutions, funds of funds and family offices. In addition, Shore’s partners have committed to invest 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.