Vance Street Capital, a private equity firm based in Los Angeles, has announced the successful closing of its latest fund, Vance Street Capital IV (Fund IV), at its hard cap of $775 million. The fund, which focuses on investments in North American companies providing engineered solutions, was significantly oversubscribed, demonstrating strong investor confidence in Vance Street Capital’s focused strategy and operational expertise. Fund IV, launched in January 2024 with an initial target of $550 million, closed in April 2024, marking a rapid and successful fundraise. This latest fund brings Vance Street Capital’s total capital raised to over $2 billion, dedicated to investments in the lower middle market.
Fund IV will continue Vance Street Capital’s established strategy of partnering with founder-owned businesses, multi-generational family-run companies, and corporate carve-outs. The firm concentrates on critical B2B manufacturing businesses within key sectors including medical, life science, industrial technology, and aerospace & defense. This sector-specific approach allows Vance Street Capital to leverage deep industry knowledge and a network of operational professionals to drive value creation.
Brian Martin, Managing Partner at Vance Street Capital, expressed gratitude for the strong investor support. “We sincerely appreciate the strong show of support from both our existing and new limited partners, which enabled the speed and success of our Fund IV fundraise,” he stated. “Our dedicated sector focus, coupled with our expertise in manufacturing and engineering, a strong team of operational professionals, and our commitment to the lower middle market resonated strongly with investors. We are very proud of the team we have built at Vance Street and our proven track record in developing highly desirable strategic assets.”
Vance Street Capital’s investment strategy is underpinned by a consistent and effective value creation playbook, specifically designed to enhance operational excellence and stimulate growth within lower middle market companies. Mike Janish, Managing Partner at Vance Street Capital, emphasized the firm’s collaborative approach. “We take great pride in partnering with founders and management teams who have successfully built market-leading companies,” said Janish. “We are committed to supporting their ongoing growth through strategic investments in people, processes, and advanced technologies. Our extensive network of experienced operators and executives plays a crucial role in accelerating the implementation of our value creation initiatives, and we are excited to continue these partnerships for many years to come.”
In addition to Fund IV, Vance Street Capital actively manages a robust portfolio across its previous funds, Vance Street Capital II, LP, and Vance Street Capital III, LP, as well as its extended value funds, VSC Extended Value funds EV1 LP, EV2 LP, and EV3 LP.
Kirkland & Ellis LLP provided legal counsel for the Fund IV raise, and M2O Private Fund Advisors acted as the exclusive placement agent.
