Monomoy Capital spinout MiddleGround Capital has pulled in $140m for its debut fund in what is reportedly a first close for the vehicle.
Middleground co-founders John Stewart, Lauren Mulholland and Scot Duncan left Monomoy in 2017 to strike out on their own, with reports last year suggesting they were eyeing up to $350m for their first independent fund.
Buyouts Magazine reported in November that MiddleGround had picked up anchor backing from Archean Capital Partners for the fund, which has now collected at least $140m according to a filing the firm lodged with the US SEC.
The same news outlet is reporting the firm has collected more than that figure for a first close, citing unnamed sources.
Credit Suisse Securities is acting as a placement agent for the raise, the SEC filing adds.
MiddleGround’s reveal of its fundraise progress via the SEC comes amid it sealing its debut deal, the the acquisition of US hydraulic connection manufacturer Alco Manufacturing Corporation.
Stewart said, “Our acquisition of Alco perfectly illustrates our broader investment thesis. We believe there is a tremendous opportunity to identify and invest in fundamentally good middle market businesses that can benefit from our operational experience. Alco’s unique product, critical position in the supply chain and robust customer and vendor relationships have positioned the company well in its market.”
Alco is a precision machiner of high tolerance hydraulic connectors, garden hose couplings and plumbing cartridges.
Financial details of the deal were not disclosed, but MiddleGround says it plans to make equity investments of between $25m and $65m in companies with revenues greater than $75m.
The firm targets control equity investments in lower middle market North American companies in the B2B industrial and specialty distribution sectors.