#United States #Atlanta #Private Equity #Eagle Merchant #Fund II

Eagle Merchant Partners Closes Fund II

Eagle Merchant Partners, a private equity firm based in Atlanta, Georgia, recently announced the successful closing of its second fund, Eagle Merchant Partners Fund II, at an impressive $415 million. The firm reached this milestone within merely seven months, demonstrating the heightened interest and trust from a wide array of institutional investors, family offices, and high-net-worth individuals, including internal team members.

The main focus of this new fund aligns with Eagle’s longstanding investment philosophy, which targets control investments in founder-owned businesses predominantly situated in the Southeastern United States. This includes sectors such as franchises, multi-unit operations, and commercial services. Notably, Eagle Merchant Partners has cultivated a strong presence in this region over the past twenty years, utilizing deep-rooted networks to partner effectively with business owners seeking their first infusion of institutional capital for expansive growth.

Stockton Croft, one of the firm's partners and co-founders, commented on the success of the fund, highlighting the Southeast's status as an appealing economic zone characterized by robust demographics and a favorable business atmosphere. “The Southeast remains one of the most attractive economic regions in the country, with strong demographics, a healthy business climate, and a fragmented lower middle market,” said Croft, expressing gratitude for the support from limited partners that exemplifies their confidence in Eagle’s investment strategy.

In complement to Croft, partner Bill Lundstrom added, “Owners continue to respond to our experience, sector expertise, and ability to help transform companies into market leaders.” He emphasized that Fund II provides the necessary capital and resources for strategic investments in high-quality companies across the region.

One of the prominent strategies adopted by Eagle in Fund II is acting as the initial institutional partner for various companies. This approach goes beyond mere financial support; it encompasses operational assistance guided by an established operational playbook. Such support will likely include enhancing leadership capabilities, optimizing infrastructure, facilitating organic growth through geographic expansion, and executing strategic acquisitions. Eagle's strong commitment to team building and meticulous execution has proven effective in creating substantial value across its portfolio.

Eagle Merchant Partners had previously closed its inaugural fund of $266 million in July 2023, which is now completely allocated across eight platform investments. The firm also worked with Piper Sandler Co., a noted private capital advisory group, acting as the global placement agent for Fund II alongside legal counsel from Kirkland & Ellis LLP.

The sustained momentum in fundraising illustrates a growing trend among private equity firms as they seek to capitalize on the unique dynamics of lower middle-market opportunities, particularly in the vibrant and economically diverse setting of the Southeastern United States. This region continues to attract attention from private equity due to its potential for growth, especially amid a backdrop of strong economic recovery post-pandemic and an ever-growing demand for innovative and quality-driven business solutions.

In conclusion, the closure of Eagle Merchant Partners Fund II not only marks a significant achievement for the firm but also reflects a broader confidence in the strategy of investing in founder-owned companies in the Southeast. The firm continues to pave the way for bringing operational excellence paired with substantial financial backing, fostering sustainable growth for businesses at a pivotal juncture in their development.