Enhanced Equity seeks second fund

Enhanced Equity, the buyout arm of Enhanced Capital Partners, is raising its second private equity fund to invest in buyout deals and growth capital investments in lower middle-market companies.

Enhanced Equity Fund II has a target of $350 million, and the firm has already closed on $106 million in commitments from 11 investors, according to a regulatory filing.

The New York-based firm is led by Andrew Paul, former partner with Welsh Carson Anderson & Stowe. He launched Enhanced Capital in 2005, raising $250 million for the firm’s debut vehicle. In addition to Paul, the Enhanced Capital team includes David Howe, a former partner at Citicorp Venture Capital and Lightyear Capital, who co-founded the firm.

The firm seeks to invest $5 million to $25 million over the life of an investment in companies with less than $100 million in revenue. Portfolio companies include Regency Hospice, a home-based hospice services provider, Triton Technologies, a direct response sales services company, and Guardian Health Care, a home health nursing company in the Southwest.

Enhanced Equity’s parent, Enhanced Capital, also invests in mezzanine and structured finance. The firm has a partnership with Berkshire Hathaway, although the firm’s website does not disclose any details on the partnership. —Erin Griffith