Milestone Partners Raises Third Fund

Milestone Partners has closed its third fund with $230 million in capital commitments. It had been targeting $200 million, and already has made four investments. The St. Davids, Penn.-based firm focuses on leveraged buyouts and recaps of lower middle-market companies.



Milestone Partners (“Milestone”) announced that it closed on capital commitments of approximately $230 million for its latest fund, Milestone Partners III, L.P. (“Milestone Partners III”), exceeding its $200 million fundraising target.


Once again Milestone has attracted a diverse investor base, including a wide range of institutional investors, family offices and entrepreneurs. In addition to the participation of nearly all of the investors in the $120 million Milestone Partners II, L.P., Milestone Partners III includes several new institutional limited partners, including public pension funds, insurance companies and funds of funds.


John Shoemaker of Milestone Partners remarked, “Everyone at Milestone appreciates the confidence that both our pre-existing investors and our new investors have demonstrated in our firm, especially in a difficult fundraising environment. We look forward to continuing our disciplined approach to investing in the new fund.”


Milestone has already completed four acquisitions through the new fund, including: Fatz Cafe, a casual dining restaurant chain; Safemark Systems, a provider of in-room hospitality safes; Global Connection, a marketer of prepaid wireline phone service; and Black Letter Discovery, the first acquisition by Callidus, a new litigation support consolidation platform sponsored by Milestone.


More about Milestone Partners ( is a private equity firm that partners with management to invest in leveraged buyouts and recapitalizations of lower middle market businesses. Milestone pursues successful niche-market leaders that provide high-margin products or services. Milestone acquires middle market businesses typically in the $15 million to $100 million valuation range with stable cash flow and expansion potential either through internal growth or acquisitions. Milestone’s transactions typically provide liquidity to shareholders of privately-owned businesses, facilitate the transition of ownership to key managers, and allow management to capitalize on growth opportunities, while maintaining the legacy of the founders