Key Takeaways
- • Shoreline Equity Partners closed its second private equity fund, Shoreline Equity Partners Fund II, L.P. (SEP II), at its limited partner hard cap of $450 million, according to a Business Wire announcement.
- • The fund was launched in October with an initial target of $400 million and was oversubscribed, with support from existing investors, the firm's executive network and new investors.
- • Shoreline, a lower middle market buyout firm targeting companies with EBITDA of $5 million to $25 million, has invested in seven platforms and completed more than 25 add-ons since its March 2019 launch.
- • The firm hired four additional professionals to support deployment of SEP II capital across the lower end of the middle market.
- • M2O Private Fund Advisors acted as exclusive placement agent and Ropes & Gray LLP served as legal counsel.
Summary
Shoreline Equity Partners, LLC, a Jacksonville, Florida-based lower middle market private equity firm, announced the close of its second private equity fund, Shoreline Equity Partners Fund II, L.P. (SEP II), at a limited partner hard cap of $450 million, according to a Business Wire release. Fundraising began in October with an initial target of $400 million in limited partner commitments. The firm said the fund was oversubscribed, supported by existing investors, significant commitments from its executive network and new investors, with Shoreline professionals also making a meaningful incremental capital commitment.
Since launching in March 2019, Shoreline has invested in seven platforms and completed more than 25 add-ons. The firm focuses on partnering with management teams of lower middle market companies with EBITDA typically between $5 million and $25 million. It reported over $750 million of committed capital under management and says it seeks equity investments of up to $150 million per transaction in buyouts, recapitalizations and corporate divestitures, targeting enterprise values of $50 million to $350 million. Its stated sector focus includes value-added distribution, business and facility services, and specialized manufacturing.
Managing Partner Mike Hand said the firm was grateful for limited partner support and described the oversubscription as a sign of the strength of its approach and team, noting it had raised capital in what he called an incredibly difficult fundraising environment. Partner Peter Franz said the firm has built a diverse investor base and highlighted the value of leveraging the collective experience of its investors.
The limited partner base includes insurance companies, fund of funds, pension and retirement funds, family offices and high net worth individuals. To support SEP II, Shoreline has added four professionals. M2O Private Fund Advisors LLC acted as exclusive placement agent, and Ropes & Gray LLP provided legal counsel.
Since launching in March 2019, Shoreline has invested in seven platforms and completed more than 25 add-ons. The firm focuses on partnering with management teams of lower middle market companies with EBITDA typically between $5 million and $25 million. It reported over $750 million of committed capital under management and says it seeks equity investments of up to $150 million per transaction in buyouts, recapitalizations and corporate divestitures, targeting enterprise values of $50 million to $350 million. Its stated sector focus includes value-added distribution, business and facility services, and specialized manufacturing.
Managing Partner Mike Hand said the firm was grateful for limited partner support and described the oversubscription as a sign of the strength of its approach and team, noting it had raised capital in what he called an incredibly difficult fundraising environment. Partner Peter Franz said the firm has built a diverse investor base and highlighted the value of leveraging the collective experience of its investors.
The limited partner base includes insurance companies, fund of funds, pension and retirement funds, family offices and high net worth individuals. To support SEP II, Shoreline has added four professionals. M2O Private Fund Advisors LLC acted as exclusive placement agent, and Ropes & Gray LLP provided legal counsel.
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