Shore Capital Partners
| 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
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
Shore Capital Partners initially focused on investing in small healthcare companies with EBITDA figures between $1 million and $10 million but later 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
- ↑ 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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