New Harbor Capital Raises $265M For Oversubscribed Second Fund | FINalternatives

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Private equity company New Harbor Capital has raised $265 million in capital commitments for its second buyout fund, easily surpassing its original target of $200 million and even closing above its $250 million hard cap.

The new fund, named New Harbor Capital Fund II, was significantly oversubscribed, the company said in a statement, and was supported by domestic and international pension funds, endowments, funds of funds, asset managers, family offices and high-net worth individuals.

Like its predecessor, Fund II will invest $10-$40 million per opportunity and will focus on rapidly growing healthcare, education and business services companies. New Harbor raised $146 million for its first fund in 2014. 

Kirkland & Ellis served as legal advisor on the fund raise, the company added. 

“We are deeply grateful for the near unanimous support of our Fund I investors and their continuing partnership with us in our second fund,” said Tom Formolo, founder and partner of New Harbor Capital, in the statement.

“Fund II included significant capital commitments from our team of executive advisors,” added founder and partner Ed Lhee. “This team of 11 founders and former CEOs of private equity-backed companies are vital to our success by providing us critical market insights, assisting in sourcing unique investments, and supporting our portfolio companies and management teams.”

Founded in 2013 and based in Chicago, New Harbor Capital has more than $400 million under management. The firm focuses on investing in lower middle market, growth-oriented healthcare, education and business services companies. The company’s investment team has completed more than 200 investments since 2000.