Ex-Insight Equity CIO gears up to raise debut fund

  • Debut fund could target $250 mln
  • Will focus on companies with $5 mln to $15 mln of Ebitda
  • Waterstreet worked at Insight Equity since 2009

Jack Waterstreet, former chief investment officer and partner at middle-market shop Insight Equity, is gearing up to raise the debut fund with his new shop, Sky Island Capital, two sources told Buyouts.

Sky Island Capital I will likely target around $250 million, one of the sources said. It’s not hit the market yet but should launch soon, sources said. The firm is considering hiring a placement agent to help with the fundraising, one of the sources said.

Waterstreet, managing partner, formed Sky Island last year after he left Insight Equity in September. He joined Insight Equity in 2009, prior to which he worked at Brockway Moran & Partners, according to his LinkedIn profile.

Waterstreet formed Sky Island alongside Partners Pat Murley and Will Dobbs. Murley, responsible for overseeing the operations of Sky Island’s portfolio companies, is chairman and chief executive at Material Sciences Corp. Murley worked with several PE-backed companies including those with Aurora Capital, Insight Equity and Peak Rock Capital, according to Sky Island’s website.

Dobbs formerly was a partner at LongWater Opportunities. Previously, Dobbs worked with Waterstreet at Insight as a vice president.

Sky Island’s team also includes two Insight Equity alumni: Neal Jain, principal, a former vice president at Insight, and Vince Smith, vice president, who had been a senior associate at Insight Equity.

The firm will chase manufacturing companies for various industries like advanced materials, building products, consumer products and food and beverage, with $5 million to $15 million in Ebitda. Sky Island closed its first investment on a deal-by-deal basis earlier this year, acquiring Material Sciences.

Action Item: Reach Sky Island here: inquiries@skyislandcap.com