Mill Road collects $362m for Fund II

The firm founded by former Lazard Capital Partners founder Thomas Lynch and a group of former Blackstone private equity executives is seeking $525m for its second fund.

Mill Road Capital has collected about $362 million for its second fund that is targeting $525 million, according to documents filed with the US Securities and Exchange Commission. Fund II had collected about $272 as of August, according to a previous filing. 

Firms that will receive compensation for Fund II listed in the documents include Triago and XT Capital Partners

Mill Road declined to comment. 

Mill Road focuses on investments in publicly-traded micro-cap companies in the retail, manufacturing, business services and consumer products sectors in the US and Canada, according to its website. Mill Road’s portfolio includes fast casual Mexican restaurant chain Rubio’s Restaurants, forest seed producer PRT Growing Services and all-natural food company Galaxy Nutritional Foods. In June, the firm realised its investment in Destination Maternity, a designer and retailer of maternity apparel. 

Former Lazard Capital Partners founder and Blackstone executive Thomas Lynch founded Mill Road in 2004. Mill Road managing directors Scott Scharfman and Justin Jacobs are also former members of Blackstone’s private equity group. Other Mill Road managing directors include Charles Goldman, a former principal at JPMorgan Partners, formerly Chase Capital Partners, and Ajay Sharma, former partner at placement agent Mercury Capital Advisors.

All of Mill Road’s senior investment professionals previously held management leadership positions or consulting roles in operating companies, according to the firm’s website. 

Mill Road is based in Greenwich, Connecticut. The firm’s name derives from the town’s industrial history.