Summer Street closes Fund III on $280m

The mid-market firm has completed two investments from the fund, bringing it to roughly 20% invested.

Summer Street Capital Partners has held a final close for its third private equity fund on $280 million, north of its $250 million target. The fund’s hard-cap was $300 million.

Buffalo, New York-based Summer Street raised Fund III in just under 18 months, and will make both control and non-control investments in sectors including education, environmental services, healthcare and manufacturing in North America. The firm targets primarily small-market buyouts, investing between $15 million and $30 million per transaction. Summer Street has invested roughly 20 percent of the capital in Fund III in two platform investments.

Greenwich, Connecticut-based Champlain Advisors acted as the fund’s placement agent and also raised Summer Street’s second fund that collected $187 million in 2007. Limited partners in Fund II include the New York State Common Retirement Fund and the Maryland State Retirement and Pension System, according to data provider PrivateEquityConnect. Roughly 25 percent of the capital in Fund III comes from new LPs.

Summer Street completed three new investments in 2012, acquiring post-secondary school education business Midwest Technical Institute, medical devices company New England Orthotic and Prosthetic Systems and Curtis Bay Energy, a medical waste disposal company servicing hospitals and healthcare providers. Summer Street has been particularly active in the waste management sector, having previously invested in collection, recycling and disposal services company Apple Valley Waste in March 2011.

Summer Street deployed more than $60 million in 2012, including 14 add-on acquisitions.

The firm was founded in 1999 by managing partners Michael McQueeny and Brian D’Amico, the former president and vice president, respectively, of Buffalo Ventures. Summer Street is comprised of a 15-person investment team and four operating partners.