#United States #New York #Private Equity #Fund III #Soundcore Capital

Soundcore Capital Partners Successfully Closes Its Oversubscribed Fund III at $450 Million

Soundcore Capital Partners, a prominent private equity firm based in New York, has proudly announced the successful final close of its Fund III with an impressive capital commitment of $450 million. This financial milestone is particularly notable as it exceeded the firm’s self-imposed hard cap, highlighting the robustness of its fundraising efforts and the trust placed in the firm by its investors.

The new fund has attracted a broad base of investment, with 117 limited partners participating from 12 different countries. This diverse participation underscores Soundcore's strong international standing and reputation in the investment community. Fund III has garnered interest not only from existing investors but also from new institutional backers. Among the investors are a wide range of entities including insurance companies, pension plans, endowments, foundations, multi-family offices, and an array of high-net-worth individuals. The blend of these participants reflects Soundcore’s solid track record, operational discipline, and a distinguished buy-and-build strategy that aims at value creation.

In comparison to its predecessor Fund II, which raised $350 million, Fund III has seen a significant increase of 28.6% in commitments. Notably, the General Partner of Soundcore has personally committed $25 million, accounting for approximately 5.6% of the total contributions to the Fund. This commitment not only showcases the firm’s alignment with its investors but also bolsters confidence in Soundcore’s strategic vision moving forward.

To further diversify its portfolio, Soundcore aims to create a total of nine platform investments within Fund III, an increase from the six established in Fund II. Since the fund’s launch, Soundcore has already made significant strides by establishing five platform investments: Heartland Paving Partners, US Dock Door, TreeServe, TrussPoint, and Reliable Energy Partners. Currently, more than 40% of the fund has been deployed, with a total of 28 acquisitions completed. These newly acquired companies collectively generate revenues of $544 million and have an EBITDA of $95 million, reflecting a disciplined approach to deal sourcing and execution by the Soundcore team.

Throughout its history, Soundcore has proven its capabilities by completing a total of 113 acquisitions, resulting in a cumulative enterprise value of $1.8 billion, along with eight successful platform exits. With over $700 million in assets currently under management, the firm stands well-positioned for continued growth.

Jarrett Turner, the Founder and Managing Partner of Soundcore, expressed gratitude towards both current and new investors, acknowledging their trust in the firm's strategy. He noted, “The enthusiasm for Fund III—far exceeding our cap—reflects the durability of our strategy, our commitment to disciplined growth, and the value we strive to deliver to our investors, founders, and management teams.”

Adding to this sentiment, Arthur Zuckerman, the Chief Operating Officer and Partner, remarked on the milestones achieved thus far in Fund III while emphasizing the firm's focus on supporting founder-owned essential service businesses. The goal remains to build market-leading platforms through operational improvements, strategic add-on acquisitions, and scalable growth strategies.

Soundcore’s differentiation strategy involves a direct-to-founder sourcing model, coupled with a highly collaborative approach. This model ensures that business owners can maintain their legacies while expediting growth in a sustainable manner. The firm seeks to invest in companies that are resilient to economic downturns, specifically focusing on fragmented industries where Soundcore can add substantial value through professionalization, technological advancements, procurement efficiencies, and strategic expansions.

With Kirkland & Ellis LLP acting as legal counsel for Fund III, Soundcore continues to pave the way in the private equity landscape, building enduring partnerships and driving growth for its investors and portfolio companies alike.

For further information regarding Soundcore Capital Partners and its investment strategies, please visit Soundcore Capital Partners or connect with them on LinkedIn.