Enhanced Equity Raising Fund Two

Enhanced Equity, the private equity arm of Enhanced Capital, is raising its second private equity fund to invest in buyouts of and growth capital for lower middle-market companies.

Enhanced Equity Fund II, L.P. has a target of $350 million, and the firm has closed on $106 million in commitments from 11 investors, according to a regulatory filing. Based in New York, Enhanced Equity, the buyout arm of part of Enhanced Capital, is led by Andrew Paul, former partner with Welsh, Carson, Anderson & Stowe. He founded Enhanced Capital in 2005, raising $250 million for the firm’s debut vehicle. David Y. Howe, former partner at Citicorp Venture Capital and Lightyear Capital, co-founded the firm.

The firm seeks to invest $5 to $25 million over the life of an investment in companies with less than $100 million in revenues. Portfolio companies include Regency Hospice, a home-based hospice services provider, Triton Technologies, a direct response sales services company, and Guardian Health Care, a home health nursing company in the Southwest.

Enhanced Equity’s parent company, Enhanced Capital, also invests in mezzanine and structured finance. The firm has a partnership with Berkshire Hathaway, although the firm’s website lists a total of zero details on exactly what kind of partnership it is.