Vance Street Capital recently closed an oversubscribed $775 million Fund IV. The Pacific Palisades-based private equity firm focused on manufacturing now has more than $2 billion in total capital commitments.

“We sincerely appreciate the strong show of support from both our existing and new limited partners to enable us to achieve the speed and success of our Fund IV fundraise,” said Brian Martin, a managing partner at Vance Street.

The firm began marketing Fund IV in January with a target of $550 million. Its investments will follow the same blueprint as its previous rounds, taking controlling stakes in lower middle-market companies with founder or family owners in manufacturing across medical, life science, industrials and aerospace verticals. The firm also specializes in corporate carve outs.

“We pride ourselves in partnering with founders and management teams who have built established, market-leading companies to support their continued growth through investments in people, processes and technologies,” said Mike Janish, a managing partner.

The latest capital raise was a significant boost from its predecessor – a $432.5 million third fund raised two years ago.

Middle market operational overhauls have been an attractive asset for investors in a tepid deal environment. 

In March, Ocean Avenue Capital, a Santa Monica-based private equity firm also investing in the lower middle market, announced it oversubscribed its latest round at $600 million, nearly double the size of its previous fund from four years ago. 

Vance Street was founded in 2007 by Richard Crowell and Richard Roeder, the co-founders of Brentwood-based Aurora Capital Group. Since its inception the firm has deployed almost $1 billion across platform investments and add-on acquisitions. 

Vance Street has been active in the secondaries market. In December the firm announced it was raising a continuation fund for Jet Parts Engineering, an aerospace company it first backed in 2018. In the same month the firm sold Terra Insights, a mining and infrastructure sensor company, to the Australian mining company Orica for $505 million.