Lightspring Capital Partners announced the final closing of its second fund, Lightspring Capital II, LP, with total capital of $218.125 million. Fund II has been licensed as a Small Business Investment Company by the U.S. Small Business Administration. With the closing of Fund II, Lightspring Capital Partners now manages approximately $350 million across its two funds.

The fund provides equity and mezzanine capital to lower-middle-market companies. Lightspring is focused on first institutional capital buyout transactions, partnering with management teams at companies that are entering a new stage of growth.

Fund II will target lower middle market businesses and support initiatives such as growth acceleration, acquisition financing, and operational improvements. The firm invests across a broad range of industries, with particular experience in manufacturing and distribution, business services, and consumer products.

The closing reflects broad institutional and private investor support for Lightspring’s lower middle market investment strategy. The firm said Fund II continues its focus on providing flexible, founder- and management-friendly capital to small businesses.

Lightspring Capital Partners is a majority women-owned private investment firm headquartered in Minneapolis and Chicago. The firm partners with management teams to drive sustainable growth in small businesses through equity and mezzanine investments.

KEY QUOTES:

“We are grateful to our investors who have shown strong support for our team and our investment strategy of partnering with management teams to drive growth in small businesses. Fund II reflects our continued commitment to providing flexible, founder- and management-friendly capital to companies at a critical stage of their growth journey.”

Meghan Otis, Co-Founding Partner of Lightspring Capital Partners