Granite Creek Capital Partners today announced the oversubscribed closing of its third investment fund, Granite Creek FlexCap III, L.P. (the “Fund” or “Fund III”), a $300 million fund focused on providing flexible capital to growing lower middle market companies.
With the FlexCap III fund, Granite Creek plans to invest in 15 to 20 companies, establishing active relationships with company leadership, serving as a trusted advisor and partner. To date, Fund III has invested in Salem One and Pinstripes, Inc. Salem One is a leading provider of corporate communication solutions, including direct marketing, packaging, and logistics services. Pinstripes is a collection of entertainment and dining venues that attracts corporate events, weddings and other gatherings.
Granite Creek began fundraising for the FlexCap III fund in 2022 with an initial target of $250 million 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 $300 million, hitting its hard cap.
FlexCap III continues Granite Creek’s 18-year history of making flexible, growth-oriented investments in entrepreneurially-led lower middle market companies engaged in manufacturing, business services, agribusiness, and other attractive high-growth niche industries. In addition to Granite Creek’s flexible capital, the firm is a partner to its businesses, bringing support to build companies and expand operational capabilities. Granite Creek is frequently the first institutional investor in a company, helping position the company for greater access to capital markets when needed.
“We are grateful for the support we have received from our investors, many of whom have supported us since our founding in 2005,” said Mark Radzik, Co-Founder and Managing Partner. “The robust investor interest in FlexCap III is a tribute to the important role that our firm plays in supporting the growth of the small businesses that fuel the American economy. Our team’s operational and financial guidance is highly valued by the companies in which we invest and is the key ingredient to the strong absolute and risk-adjusted returns that we seek. With the close of Fund III, our team is well prepared to execute on our healthy pipeline of opportunities.”
Granite Creek Capital Partners closed its previous $200 million 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 $85 million of assets under management.
With the close of FlexCap III Fund, Granite Creek has over $700 million of assets under management across its strategies.