Mill Road Capital raises $420m for second fund


connecticut_sqPrivate equity firm Mill Road Capital has held a $420m final close for its second fund, which is 70 per cent bigger than its debut vehicle.

The fund was aiming to raise up to $525m, according to documents filed with the US Securities and Exchange Commission. The firm did not specify whether this was the target or the hard cap in the filings and managing director Ajay Sharma refused to comment on the fundraise.

In September this year AltAssets reported that the Connecticut-based firm had $361.7m from 61 LPs.

Mill Road Capital II has been backed by endowments, foundations, corporate and public pension funds, family offices, and asset managers from around the globe. The firm is focused on acquiring stakes in publicly traded micro-cap companies in the US and Canada with a view to eventually taking them private.

Mill Road senior managing director Thomas Lynch said, “We are very pleased by the strong support of our existing investors from our first fund and feel fortunate that we were also able to add a significant number of new, high quality institutional and private investors in Fund II.

“The successful fundraise is a clear endorsement of our differentiated investment strategy of exclusively focusing on investing in small public companies and improving their operations.”

Mill Road was launched in 2004 by former Blackstone managing director and Lazard Capital Partners founder Thomas Lynch and his former Blackstone colleagues Justin Jacobs and Scott Scharfman.

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