High Road Fund II, A Hot Fund, Closes In On $300 Mln Hard Cap: CORRECTED

High Road Capital is nearing the $300 million target hard cap of its popular second fund, according to a placement source and an SEC filing.

The New York-based private equity firm has collected $285.5 million, the filing dated Aug. 12 says. High Road Capital Partners II LP had initially sought to collect $200 million but then raised its target to $300 million, the placement source says. Fundraising for High Road Capital Partners II LP began in January with a $200 million target, a different source says. The fund has surpassed that total and is nearing the pool’s $300 million hard cap, the second source says.

A final close for Fund II is slated for September, the placement source says.

At $300 million Fund II would be double the size of High Road’s first pool, which collected $150 million in 2008.

Sister magazine Buyouts reported High Road’s fundraising plans for its second pool in October.

Founded in 2007 by former executives of The Riverside Company, High Road targets lower-middle-market companies in manufacturing, services, media and health care. The firm typically invests in companies generating at least $10 million in revenue and at least $3 million of EBITDA.

High Road has been active. It has completed 24 transactions, including 22 acquisitions and two exits, since its founding in 2007. In May the PE firm acquired The Crown Group, a provider of coating services to the automotive, agricultural, heavy truck and other industrial markets. In December High Road bought Accurate Component, a distributor of industrial fasteners, hardware and components to manufacturers.

High Road’s first exit came in February 2012 when it sold Milwaukee Gear Company for $80 million. In December High Road sold Accentus, a provider of medical transcription, document imaging, and remote coding technology. The Accentus sale generated a 3.1x gross cash-on-cash return and a 49% gross IRR, High Road said at the time.

Officials for High Road couldn’t be reached for comment.

Correction: A prior version of this story stated that the target for High Road’s second fund is $300 million. In fact, the target for High Road Capital Partners II LP is $200 million. The hard-cap for the fund is $300 million. The story and headline have been corrected. 

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