Seaside Equity Partners (“Seaside” or the “Firm”), a lower middle market private equity firm, recently announced the final close of its second fund, Seaside Equity Partners II, L.P. (“Seaside Fund II”), at $325 million. The fund significantly exceeded its initial target of $225 million, demonstrating strong investor confidence in Seaside’s investment strategy and team.
This impressive fundraising achievement comes despite a challenging market environment. Seaside attributes its success to its differentiated investment approach and focus on mission-critical service providers in the Western United States. The firm’s strategy resonated with a diverse group of limited partners, including endowments, foundations, pension funds, insurance companies, consultants, family offices, and individual investors.
“Closing Seaside Fund II substantially above our target amidst a difficult fundraising climate validates our team’s expertise and the strength of our investment strategy,” said Andrew Thompson, Managing Partner at Seaside. “We are deeply grateful for the continued support from our existing investors and welcome our new partners. We remain committed to our disciplined approach to investing and driving value creation in the lower middle market.”
Seaside Fund II will follow the same successful strategy as its predecessor, Seaside Equity Partners Fund I, L.P. (“Seaside Fund I”). The firm will target founder, family, and entrepreneur-owned businesses with solid foundations and significant growth potential. Seaside provides not only capital but also operational expertise and strategic guidance to help these companies achieve their full potential. Investments will primarily focus on companies headquartered in the Western United States providing essential services.
With the closing of Seaside Fund II, Seaside Equity Partners has now raised over $500 million in total capital and has invested in 26 companies, comprising nine platform companies and 17 add-on acquisitions. Seaside Fund I, a $160 million fund closed in February 2021, is nearing full deployment, including reserves earmarked for follow-on investments in existing portfolio companies. This continued investment activity underscores Seaside’s commitment to supporting the growth and success of its partner companies.
Seaside’s proven track record, combined with the successful closing of Seaside Fund II, positions the firm for continued growth and success in the lower middle market private equity space. The firm’s focus on operational excellence and partnership with management teams will enable it to capitalize on attractive investment opportunities and generate strong returns for its investors. The oversubscribed fund allows Seaside to continue its mission of partnering with exceptional businesses and driving long-term value creation.
For more information about Seaside Equity Partners, please visit www.seasideequity.com.
