During the last fundraising boom, firms raised substantially larger funds than their previous funds. Often, this pushed middle-market investors into the category of large-market investors. Today, being an investor in the middle market is cool again, and the middle market is what the LPs are interested in backing. With this in mind, when Linsalata Capital went to market with its most recent fund, the firm made the decision not to raise more than it had with its predecessor.

"We targeted the same size fund, because we decided we didn't need to grow," reports Eric Bacon, a senior managing director with Linsalata. "Getting larger would put pressure on our ability to invest. This size fund was right for our team, and for banks and intermediaries with whom we have relationships," says Bacon of his firm's $427 million fund. "We are comfortable in this size range."

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