Seaside Equity Partners is now two-for-two in oversubscribing funds.
On Jan. 5, the San Diego-based Seaside announced it was closing its second private equity investment fund, Seaside Equity Partners II, L.P. a whole $100 million dollars over its initial target. Seaside began fundraising in September 2022 with al target of $225 million. With the support from existing investors, a base of new limited partners and a meaningful commitment from the firm’s team, Seaside Fund II had its final close in December 2022 at $325 million.
“We are grateful for the confidence and profound support that our new and existing investors have in our team and investment strategy,” said Managing Partner Andrew Thompson. “We are extremely pleased that we were able to close meaningfully above our targeted fund size in such a difficult fundraising environment and remain committed to continuing our disciplined approach to pursuing value creation within the lower middle market.”
The success of Seaside Fund II follows the initial success of the firm’s debut fund, Seaside Fund I, which was raised in February 2021 and also closed oversubscribed in July of that year with $160 million – $55 million over its target of $120 million.
Like its predecessor, Seaside Equity Partners Fund I, L.P., Seaside Fund II will seek to provide capital, resources and strategic support to leading providers of mission critical services that are headquartered in the Western United States. Seaside adheres to a growth-focused and operationally oriented approach toward investing in lower-middle market companies. Seaside Fund II will focus on partnering with founder, family and entrepreneur-owned businesses with strong foundations and opportunities for outsized growth.
Seaside credits its unique approach and differentiated investment focus for drawing significant support from a broad base of limited partners, endowments, foundations, corporate and public pensions, insurance companies, consultants, family offices and individuals – all despite the current challenges in the fundraising marketplace.
With the closing of Seaside Fund II, Seaside has raised over $500 million and invested in 26 companies including nine platform companies and 17 add-on acquisitions. Seaside Fund I will soon be fully deployed, including reserves for growth investments in existing platforms.