Shore Capital Partners needed only 30 days to close its debut institutional fund, which collected $112.5 million.
Chicago-based Shore, which invests in microcap healthcare companies with $1 million to $5 million EBITDA, sent out its PPM in early March, said Managing Partner Justin Ishbia. No new investors were allowed to come in after April 1, Ishbia said.
The target for Fund I was $100 million but Shore got “well over that,” he said. “It was closer to $200 million,” he said. The PE firm chose to “stay in its sweet spot” and accept $112.5 million, Ishbia said.
Fund I formally closed on May 30, he said.
Shore Capital, named after Lake Shore Drive in Chicago, did not use a placement agent. Matthew Bergmann of Winston & Strawn provided legal advice.
Founded in 2009, Shore Capital has made 14 investments in the healthcare space. The PE firm used five special purpose vehicles, with roughly $10 million to $15 million each, to make the acquisitions. Shore wanted to demonstrate that it had experience managing $10 million to $15 million equity platforms. “We did it five time,” he said.
Shore spent a lot of time with potential LPs over the last five years, Ishbia said. When Shore began fundraising this year, “substantially all” of the LPs from its prior vehicles chose to invest, he said. Ishbia declined to disclose names but investors include leading pension funds, fund-of-funds and financial institutions.
“We are excited about the efficient fundraising process and it was a great team effort,” he said. “Now we want to get back to our real job of investing capital into great microcap healthcare companies.”
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