NEW YORK, NY-APRIL 21, 2021 – NexPhase Capital, LP (“NexPhase”), an operationally-focused private equity firm, today announced it has successfully closed NexPhase Capital Fund IV (“NPC IV” or the “Fund”) at its hard cap of $544 million, which represents more than a 50% increase over its predecessor fund, NexPhase Capital Fund III. The Fund was oversubscribed with strong support from existing investors combined with significant interest from a diverse base of new investors, including public pension plans and global institutional investors.
Consistent with previous funds, NPC IV will seek control buyout investments in growth-oriented and capital-efficient North American lower middle-market companies across the consumer, healthcare and software verticals. The firm applies a thematic approach to identify attractive subsectors, and targets primarily entrepreneur-owned businesses where it believes it can help drive value creation through its industry expertise and operational playbook. NexPhase has completed four investments in NPC IV to date.
The NexPhase team includes 12 senior-level operating executives with a range of C-suite operating and functional expertise, who work closely with the investment team throughout the due diligence process and also act as a resource to management post-close.
“We are incredibly grateful to have closed NPC IV at its hard cap with such strong support from our existing and new investors,” said Ted Yun, Managing Partner at NexPhase. “This successful fundraise is a testament to their confidence in our team and strategy, the strength of the platform we have built and the opportunities ahead. As we continue to deploy this capital, we believe we are well-positioned to execute on many attractive investments in our target subsectors and help entrepreneurs achieve outsized growth while mitigating risks that often come with rapid scale. We look forward to leveraging our industry expertise and operational playbook as we seek to create value and deliver attractive returns to our investors.”
MVision Private Equity Advisers acted as the lead global strategic fundraising adviser for NexPhase. Forum Capital Securities LLC also provided advisory services. Kirkland & Ellis International LLP acted as the global legal, tax and regulatory counsel.