North Carolina-based Capitala Group has closed its fourth fund on $125 million. The fund will focus on making growth equity investments in lower and mid-market companies.
The Growth Fund typically invests $2 million to $10 million and can complete larger transactions through syndication. Targeted industries include business services, healthcare, consumer and retail, building products, and manufacturing.
Investors include public and private pensions, fund of funds, and family offices.
Earlier this week the firm also formed a joint venture with Trinity Universal Insurance Company, a subsidiary of Kemper Corporation, to create Capitala Senior Liquid Loan Fund I. The joint venture is expected to invest primarily in senior secured loans to middle market companies.
Capitala and Trinity have committed to provide $25 million of equity to the joint venture, with Capitala providing $20 million and Trinity providing $5 million. Capitala and Trinity expect to begin funding the portfolio with new investments during the second quarter of 2015.