Southfield Capital Successfully Closes $560 Million for Oversubscribed Fund IV

Southfield Capital Closes Oversubscribed Fund IV at $560 Million

In a significant development in the private equity landscape, Southfield Capital, a well-recognized firm in the lower middle market segment, has announced the successful closure of its Fund IV, which raised an impressive $560 million in capital commitments. This fund not only reached its financial targets but also exceeded its original hard cap, reflecting the strong demand and confidence in Southfield's investment strategies.

The closure of Fund IV has garnered support from a diverse base of investors. Southfield Capital's existing partners have reaffirmed their commitment, while the firm has broadened its limited partner base by attracting select new institutional investors both domestically and internationally. This group includes family offices, pension funds, and insurance companies, highlighting the trust investors place in Southfield’s track record and expertise.

Southfield Capital has been in operation for over two decades, and its approach revolves around collaborating closely with management teams to drive organic growth and identify strategic add-on acquisition opportunities. Their ambition with Fund IV is to replicate previous successes by investing in entrepreneur-led, growth-oriented businesses within the lower middle market.

Andy Levison, the Managing Partner at Southfield, expressed gratitude towards the firm's limited partners, stating, “We are grateful for the continued trust and support of our limited partners, both returning and new. The successful closing of Fund IV is a testament to the strength of our investment strategy and the caliber of our team.” His comments underscore a commitment to unlocking value through digital transformation and strategic growth, aiming to deliver exceptional returns to investors.

The firm's unique partnership-first model aligns with its rich experience and successful history in creating value not only for limited partners but also for management teams. Southfield Capital's strategy focuses on companies that demonstrate a potential for high growth, typically targeting firms with earnings before interest, tax, depreciation, and amortization (EBITDA) ranging from $4 million to $20 million. By combining organic growth strategies with acquisitions, Southfield aims to scale these businesses impressively.

As part of this closure, Atlantic-Pacific Capital acted as Fund IV’s exclusive global placement agent and advisor, positioning the fund for further growth and success in the future.

In an environment where private equity firms are seeking greater flexibility and options, Southfield Capital has strategically positioned itself to respond to the changing dynamics of the market. The closing of Fund IV is more than just a financial milestone; it validates Southfield Capital's approach to investment and the strength of its operational model within the private equity sector.

In summary, the closure of Fund IV showcases Southfield Capital's robust investment strategy and ability to attract substantial capital from a wide range of investors. With a renewed focus on partnering with management teams and harnessing growth opportunities, Southfield is poised for a promising future as it moves forward with its latest fund.

For more information about Southfield Capital and their investment strategy, interested parties can visit their official website at www.southfieldcapital.com.