Seacoast Capital has held the closing of Seacoast Capital Partners IV with total commitments of USD239 million.
Limited partners include banks, private pension funds, private foundations, insurance companies, family offices and high net worth individuals.
Along with significant support from private limited partners, Seacoast received approval from the US Small Business Administration (SBA) for its fourth Small Business Investment Company (SBIC) license.
Over 85 per cent of investors from the firm’s 2012 vintage USD150 million fund, Seacoast Capital Partners III, returned to invest in Seacoast IV.
Consistent with the investment strategy of its predecessor funds, Seacoast IV will make non-controlling investments in privately held lower middle market companies.
Seacoast specialises in “sponsorless” transactions, preferring to deal directly with company owners or management teams, although the firm will opportunistically consider investments led by professional investor groups.
Seacoast will invest from USD3 million to USD20 million in any combination of junior securities for any one company.
The partnership, led by Tim Fay (San Francisco), Tom Gorman (Boston) and Jeff Holland (San Francisco), is dedicated to identifying companies whose management teams possess a passion for maximising the potential of their chosen enterprise.