Soundcore Capital Closes $450M Private Equity Fund
New York-based private equity firm Soundcore Capital Partners announced the final close of its third fund, raising $450 million in an oversubscribed offering. The fund will continue the firm's strategy of acquiring and investing in platform companies in the lower-middle market.
- This is Soundcore's third and largest fund to date, representing a significant increase from its debut institutional fund, which closed in 2018 with $350 million. The term "oversubscribed" indicates that investor demand for the new fund exceeded the $450 million cap. - The firm was co-founded in 2015 by Jarrett Turner, who serves as Managing Partner. The team has been expanding, recently adding senior investment professionals from firms like ORIX Capital Partners and TZP Group. - Soundcore targets companies in the U.S. lower-middle market, which generally includes businesses with enterprise values between $50 million and $500 million. This market segment is often comprised of founder- or family-owned businesses and is considered less competitive than the market for larger companies. - The firm employs a "buy-and-build" strategy, which involves acquiring a "platform" company and then growing it through a series of smaller, add-on acquisitions. This approach aims to create economies of scale and increase market share. - Soundcore's investment focus spans sectors like industrial and business services, specialty distribution, and value-added manufacturing. Past portfolio companies include Sweeping Corporation of America, a power sweeping service, and InfraStripe, a pavement marking company. - A unique aspect of the firm's culture is a program called "Soundcore Works," where every employee, including partners, is expected to spend time on-site at portfolio companies, working alongside entry-level employees to better understand the businesses from the ground up.
