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.