Summer Street Reaches $280M Final Close On Fund III

Firm: Summer Street Capital Partners

Fund: Summer Street Capital III LP

Amount Raised: $280 Million

Initial Fund Target: $250 Million

Key Executives: Michael McQueeney and Brian D’Amico

Placement Agent: Champlain Advisors

“We’re glad to be done fundraising and happy to have finished above target,” said McQueeney. The new fund represents a major step up in size from Fund II, which closed at $187 million in 2007.

Major investors in Fund III include the New York State Common Retirement Fund, which committed $50 million and the Maryland State Retirement and Pension System, which also committed $50 million. About $40 million of the commitments from the New York pension fund were earmarked for investments in New York-based businesses.

Summer Street, which manages more than $550 million in investor capital, is an operationally focused firm that makes both control and minority investments in four industries: education, waste disposal and recycling, health care services and niche manufacturing. Most investments go to companies that have $30 million to $150 million in annual revenues located in the eastern United States and Canada.

For the new fund, McQueeney said the firm expects to do around 10 deals, with each check ranging between $15 million and $30 million. During 2012, the firm said it invested more than $60 million across 17 companies. Fund III’s fundraising efforts were aided by Champlain Advisors, a placement agent.

Summer Street was founded in 1999 and is led by McQueeney and Brian D’Amico.  It currently employs 13 investment managers and four operating partners.