LightBay Capital announced Thursday that its inaugural institutional fund, LightBay Investment Partners LP, secured $615 million in capital.
LightBay, a middle-market private equity firm based in Los Angeles, began marketing the fund in April 2017 with a target of $450 million, according to co-founders Nav Rahemtulla and Adam Stein. The $615 million comes from a variety of family offices, foundations, fund of funds, insurers, pension plans and LightBay professionals.
“Adam and I are thrilled to continue our partnership with so many institutions who have been with us our entire careers,” said Rahemtulla, who worked with Stein for 15 years at Ares private equity. “Together with our new limited partners, we look forward to enjoying continued success.”
With the funds, LightBay will target investments between $25 million and $150 million in the consumer, health care and business services sectors. The company’s investment strategy will focus on leveraged buy-outs, shared-control opportunities and special situations.
“The flexibility of our capital base enables us to invest in high-quality companies in all market environments, and our strategy is well suited to take advantage of the disruption occurring across the consumer, healthcare and business services sectors,” said Stein, in a statement. “We have built a terrific team with experience in business development, investing and driving operational excellence, and are eager to partner with talented management teams and create meaningful value for our investors.”
During the eight-month fundraising process, UBS Private Funds Group was the exclusive placement agent for LightBay while Kirkland & Ellis served as legal counsel.