Shore Capital maintains size discipline for third flagship, eyes food & beverage fund

  • Firm raises first adjacent fund
  • Brought on Arbor exec to target food and beverage
  • Targets third flagship pool

Shore Capital Partners, a healthcare specialist, is out with its third flagship fund, and with an adjacent pool that will target the food-and-beverage industry, sources told Buyouts.

Shore, which started in 2009 as a deal-by-deal investor, is targeting around $250 million for Fund III, a source said. That is in keeping with the size of its past two funds: The debut closed on $112.5 million in 2014 and Fund II closed on $190 million in 2017.

The food-and-beverage fund could target around $125 million, one of the sources said. Whether a final target for that pool has been set is unclear.

Justin Ishbia, Ryan Kelley, Mike Cooper and John Hennegan formed Shore with a view toward investing in the small side of the market. Partner Don Pierce joined in 2013.

Shore makes microcap investments in healthcare, including in dermatology, healthcare staffing, medical products, autism therapy, eye care, dental services and veterinary services.

For platform investments, Shore looks for companies with $10 million to $100 million of revenue and $1 million to $10 million of Ebitda, the firm’s website shows.

Shore’s food-and-beverage platform is newly formed, led by Ishbia and Richard Boos, who joined the firm in October 2018 from Arbor Investments.

Boos worked at Arbor starting in 2007, according to his LinkedIn profile. Prior to Arbor, Boos worked more than 12 years at Sara Lee Corp, his profile said.

Earlier this year, Shore Capital-backed IZI Medical Products acquired soft tissue biopsy and breast localization needle assets from Cook Medical.

Action Item: Check out Shore Capital’s Form ADV here: