Granite Creek Capital Partners, L.L.C., a private investment firm based in Chicago, closed its third investment fund, Granite Creek FlexCap III, L.P., at $300m.
Granite Creek began fundraising for the FlexCap III fund in 2022 with an initial target of $250m in total commitments. With the continued support of existing investors, new institutional partners, and increased commitments from the firm’s team, Fund III held a final close at $300m, hitting its hard cap.
The fund focuses on providing flexible capital to growing lower middle market companies engaged in manufacturing, business services, agribusiness, and other attractive high-growth niche industries. With the FlexCap III fund, Granite Creek plans to invest in 15 to 20 companies, establishing active relationships with company leadership, serving as an advisor and partner.
To date, Fund III has invested in Salem One, a provider of corporate communication solutions, including direct marketing, packaging, and logistics services, and Pinstripes, a collection of entertainment and dining venues that attracts corporate events, weddings and other gatherings.
Granite Creek Capital Partners closed its previous $200m FlexCap II fund in 2019. The FlexCap II fund includes a portfolio of 16 companies, including Morrow Sodali, Veterinary Pharmaceutical Solutions, Sunset Pacific Transportation and Odyssey Aviation. Its prior corporate investment fund (FlexCap I), a top decile performing fund, had $85m of assets under management.
With the close of FlexCap III Fund, the firm has over $700 million of assets under management across its strategies.