Shore Capital Partners
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| Private company | |
| ISIN | 🆔 |
| Industry | Private equity |
| Founded 📆 | |
| Founder 👔 | Justin Ishbia Mike Cooper Ryan Kelley John Hennegan |
| Headquarters 🏙️ | , , |
Area served 🗺️ | |
| 💎 AUM | US$6 billion (2023) |
| Members | |
Number of employees | |
| 🌐 Website | shorecp |
| 📇 Address | |
| 📞 telephone | |
Shore Capital Partners is a private equity firm headquartered in Chicago, Illinois.The firm generally invests in microcap companies. Their primary concentration lies in identifying, acquiring, constructing, and expanding small business platforms inside expanding industrial areas[1] In 2022, Pitchbook ranked the firm as the third most active private equity firm globally with 193 deals.[2]
History[edit]
Shore Capital Partners was founded in 2009 by Justin Ishbia, Mike Cooper, Ryan Kelley, and John Hennegan.[3][4][5][non-primary source needed]
The firm raised $112.5 million for its first institutional private equity fund in 2014.[4][6]
In October 2019, it opened an office in Nashville.[7]
From 2020 to 2023, the microcap investment business with a concentration on health care closed 801 acquisitions, positioning it as one of the busiest buyout firms globally.[8]
Investments[edit]
Shore Capital Partners initially focused on investing in small healthcare companies with EBITDA figures between $1 million and $10 million but later on expanded into investing in small companies from other industries such as food and beverage.[5] In 2021, Shore Capital expanded into the business services and real estate industries.[5][9][non-primary source needed][10] In 2023, the firm raised a fund to invest in industrial businesses, such as environmental services, transportation, and aerospace and defense, that have revenue between $5 million and $100 million.[11][12][non-primary source needed]
The firm takes a buy-and-build approach to investing where it performs numerous add-on deals to bolster and expand the businesses it buys. This is done by investing in an initial company then acquiring others within the same sector, and combining them.[5][10] The firm's acquisitive business model leads to a higher volume of deal-making than the average private equity firm.[11]
In 2021, the firm had approximately 30 portfolio companies.[13] By 2023, Shore Capital had acquired a total of 56 platform companies and approximately 800 add-on acquisitions.[11]
Boris Groysberg of the Harvard Business Review states that "By 2023, Shore had sold 14 of its 60 platform companies, delivering an average 7.0x gross cash-on-cash return, putting it in the top 1% of PE firms. By 2023, based on the 14 exits, Shore's median sale return was 5.5x gross cash-on-cash return, with an average gross internal rate of return (IRR) of 77%."[14]
References[edit]
- ↑ Cassel, Ian. "Building an Unfair Advantage". MicroCapClub. Retrieved 2024-07-24.
- ↑ "Global league tables: 2022 Annual". PitchBook. Retrieved 2023-05-23.
- ↑ Witkowsky, Chris (2019-04-08). "Shore Capital maintains size discipline for third flagship, eyes food & beverage fund". PE Hub. Retrieved 2022-12-11.
- ↑ 4.0 4.1 McCann, Bailey (2014-06-06). "Shore Capital Partners closes first fund on $112.5m". Private Equity International. Retrieved 2023-05-23.
- ↑ 5.0 5.1 5.2 5.3 Cumming, Chris (2021-07-15). "Shore Capital Partners Raises $686 Million for Three New Funds". Wall Street Journal. Retrieved 2022-12-07.
- ↑ Kreutzer, Laura (2017-04-04). "Shore Capital Closes Sophomore Fund at $190 Million". Wall Street Journal. Retrieved 2022-12-07.
- ↑ Stinnett, Joel (2019-10-21). "Chicago-based Shore Capital Partners opens in Nashville". Nashville Business Journal. Retrieved 2022-12-07.
- ↑ Blask, Guerin. "This Main Street Billionaire Bought Over A Thousand Small Businesses—And Never Lost A Dime". Forbes. Retrieved 2024-07-24.
- ↑ Cooper, Laura (2019-04-17). "Shore Capital Expands Beyond Health-Care Roots With New Food-and-Beverage Fund". Wall Street Journal (Press release). ISSN 0099-9660. Retrieved 2022-11-30.
- ↑ 10.0 10.1 Sattiraju, Nikitha (2022-09-23). "Shore Capital Chases Add-Ons for Food Platforms in Latest Fund". The Deal. Retrieved 2022-12-07.
- ↑ 11.0 11.1 11.2 Daniels, Steve; Ecker, Danny (2023-07-13). "Justin Ishbia's buyout firm is growing, and it needs more downtown space — for real". Crain's Chicago Business. Retrieved 2023-08-22.
- ↑ Cumming, Chris (2023-07-13). "Shore Capital Partners Closes Two New Funds at More Than $643 Million". Wall Street Journal. Retrieved 2023-08-22.
- ↑ Stinnett, Joel (2021-08-25). "Shore Capital Partners raises $360 million health care fund, moving Nashville office to Broadwest". Nashville Inno. Retrieved 2022-12-07.
- ↑ Groysberg, Boris. "Shore Capital Partners: The Next Ten Years". Harvard Business Review. Retrieved 2024-07-24.
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