Fundraising

Atlantic Street completes first close on $70m debut fund

Morgan Stanley Alternative Investment has committed $35m to the Connecticut-based turnaround specialist, a spin-out from North Castle Partners.

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Atlantic Street Capital, a Connecticut-based turnaround and special situations firm, has completed a $35 million (€22 million) first close on its $70 million debut fund.

Morgan Stanley Alternative Investment Partners has made the initial commitment, according to an Atlantic Street spokesman.
 
“Our goal is to identify special situation and other value-driven investments that pose challenges to typical private equity firms,” Peter Shabecoff, Atlantic Street founding partner, said in a statement.

Shabecoff, a Harvard Law School graduate who once represented financial sponsors at law firm Debevoise & Plimpton, launched Atlantic Street in the fall of 2006 after spinning out from consumer specialist North Castle Partners.

Atlantic Street has also announced the acquisition of Express Courier Systems, a logistics service provider to the medical laboratory industry, through portfolio company Ace Expediters. Terms of that deal were not disclosed.

In addition to those two acquisitions, Atlantic Street also controls a majority stake in Double B Foods, a frozen food manufacturer.

The fund will target businesses with revenues between $30 million and $120 million.