Northlane, American Capital spinout, prepares to launch first independent fund

  • Spun out from American Capital in January
  • Northlane manages legacy portfolio
  • Four partners formed Northlane

Northlane Capital Partners, a spinout from American Capital, is gearing up to raise its first independent fund, two sources told Buyouts.

The pool’s target is still being determined, the sources said. Northlane targets the healthcare, business services and industrial technology industries with equity investments of $25 million to $175 million.

The Bethesda, Maryland, firm, led by partners Justin DuFour, Sean Eagle, Eugene Krichevsky and David Steinglass, invests in the U.S. middle market. North Lane executives have been managing the $1 billion American Capital Equity III, a fund launched in 2014 with contributions from Goldman Sachs, Coller Capital and Stepstone Group, statements at the time said.

The partners spun out of American Capital in January as part of the acquisition of American Capital by Ares Capital Corp, a news release at the time said. Limited partners in the third fund acquired American Capital’s stake in the vehicle, and Northlane took over management of the fund, renaming it Northlane Capital Partners I, the statement said.

Current portfolio companies include marketing-automation platform Brandmuscle; Potpourri, a multichannel direct marketer; and Schulman IRB, which provides regulatory and compliance services to the clinical-research industry.

In January, Northlane invested in PAR Excellence Systems, which provides supply-chain-management systems to the healthcare industry.

The firm didn’t return a request for comment.

Action Item: Northlane’s Form ADV:

Marine One carrying U.S. President Barack Obama is guided on landing at Walter Reed National Military Medical Center in Bethesda, Maryland, on Aug. 26, 2016. Photo courtesy Reuters/Joshua Roberts