High Road Capital Partners has closed its Fund II on its $320 million hard-cap.
The firm took less than 12 months to raise the fund, which launched with a $200 million target. A majority of limited partners in High Road’s debut fund committed to Fund II, which attracted roughly a dozen new investors. LPs in Fund II include pension funds, university endowments, family offices and high net-worth individuals.
“We’ve had a couple of good exits and I think the space that we’re in continues to be very attractive,” High Road co-founder and managing partner Robert Fitzsimmons told Private Equity International. “The smaller end of the mid-market just gives you more opportunity to build value on a consistent basis.”
Fund II will continue to invest using High Road’s strategy of focusing on companies in the US and Canada with earnings before interest, tax, depreciation and amortisation of between $3 million and $10 million. The firm has completed two platform investments from Fund II, acquiring industrial coatings company The Crown Group and packaging and processing equipment provider SMB Machinery Systems.
High Road’s two exits both came in 2012. The firm generated a 3.1x return multiple on its investment in healthcare services company Accentus in December and a 2.6x return from industrial gear manufacturer Milwaukee Gear Company in February.
High Road has completed 11 platform investments since its founding in 2007. The firm’s debut fund closed on $153 million in 2009.