Emerging Manager Roundup: Chicago Pacific, LCN, Regal Healthcare and more

Emerging private equity fund managers bounced back from their least successful fundraising period, though fundraising still remained relatively sluggish. Five emerging managers raised just over $1 billion from July 31 through Aug. 13, according to Buyouts data.

Year to date, new managers have raised a combined $39.5 billion, according to Buyouts.

Chicago Pacific Founders raised the most. The firm’s sophomore fund raised more than $399.6 million of a targeted $400 million from just one investor, according to an SEC filing. The firm closed its debut fund at a $325 million hard cap in 2016. The firm was founded in 2014 by Mary Tolan, Larry Leisure and Vance Vanier. It makes buyout and growth transactions in the U.S. and Canada.

LCN Capital Partners came in at second, raising more than $321 million through two funds in the market. The New York-based firm’s third North American fund raised $199 million from 35 investors through two vehicles, while its European fund raised $122 million from seven investors through two vehicles. Both funds have targets of $500 million.

Regal Healthcare Capital was third, closing its sophomore fund at $165.9 million, beating its original $125 million target. The firm was launched in 2018 by former Jefferies banker Jon Santemma and healthcare entrepreneur David Kim.

Below is a rundown of the most significant emerging private equity and venture funds that Buyouts Insider has identified as being in the market over the past few weeks:

Chicago Pacific Founders

  • Focus: Exclusively on healthcare services.
  • Amount raised: $399.6 million
  • Target: $400 million
  • Location: Chicago
  • Phone: +1 312-273-4750
  • Filing: https://bit.ly/2Yo3nbc

Crossplane Capital

  • Fund name: Crossplane Capital Fund, L.P.
  • Focus: Complex transactions involving strategically unique lower-middle-market businesses.
  • Amount raised: $93.8 million
  • Target: $275 million
  • Location: Dallas, TX
  • Phone: +1 805-324-4072
  • Filing: https://bit.ly/2YSrT4B

LCN Capital Partners

Regal Healthcare Capital

  • Fund names: RHCP-II, L.P.; RHCP-II QP, L.P.
  • Focus: Healthcare service companies and practices in the lower middle market.
  • Amount raised: $165.9 million
  • Target: $165.9 million
  • Location: New York City
  • Phone: +1 212-393-4795
  • Filings: https://bit.ly/2N4cC9t; https://bit.ly/33vCGjJ

Water Property Investors

  • Fund Name: Water Property Investor II, LP
  • Focus: Water-stressed Western U.S.
  • Amount raised: $66.8 million
  • Target: N/A
  • Location: New York City
  • Phone: +1 212-754-5132
  • Filing: https://bit.ly/2Z3AcFR

Download a spreadsheet with information about all of the funds: Emerging PE Roundup