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New Harbor Capital closes debut fund on $146 million

Former CHS Capital partners raise their first buyout fund

Chicago-based New Harbor Capital has closed its debut fund – New Harbor Capital Fund – on $146 million. 

The fund will focus on lower-middle market growth investments and buyouts in business services companies, with an emphasis on healthcare and education.

New Harbor declined to comment on fundraising.

Investors in the fund primarily consist of college endowments, public pension plans, fund-of-funds, insurance companies, high net worth individuals and family offices.

The firm was co-founded by Tom Formolo and Ed Lhee, who were previously partners at CHS Capital. CHS, formerly Code Hennessy & Simmons, announced its intension not to raise another fund in 2013. The firm focused on mid-market leveraged buyouts and expansion opportunities in North America. CHS is expected to wind down the remaining parts of its portfolio by the end of this year, according to Private Equity International's research and analytics division.

Karis Capital Partners acted as exclusive placement agent on the fund.