Seacoast Capital, a Boston, MA and San Francisco, CA-based private equity firm, closed its fourth lower middle market fund, at $239M.
Limited partners include banks, private pension funds, private foundations, insurance companies, family offices and high net worth individuals. Along with support from private limited partners, Seacoast received approval from the U.S. Small Business Administration for its fourth Small Business Investment Company (SBIC) license. Over 85% of investors from the firm’s 2012 vintage $150MM fund, Seacoast Capital Partners III, L.P., returned to invest in Seacoast IV.
Consistent with the investment strategy of its predecessor funds, Seacoast Capital Partners IV, L.P., will make non-controlling investments in privately held lower middle market companies. Seacoast specializes in dealing directly with company owners or management teams, although the firm opportunistically considers investments led by professional investor groups.
Led by Tim Fay (San Francisco), Tom Gorman (Boston) and Jeff Holland (San Francisco), the fund will invest from $3 million to $20 million in any combination of junior securities for any one company.