Summer Street closes $187m fund

Buffalo, New York-based Summer Street has closed its second fund on $187 million, exceeding its target by $37 million.

Summer Street Capital Partners has closed its second, small-market dedicated fund on $187 million (€138 million). SSCII’s target was $150 million.

“Summer Street’s portfolio has achieved over 28 percent compounded annual earnings growth. This resulted in significant support from existing limited partners from our first fund, while helping us attract a number of new, sophisticated investors to this second fund,” said Michael McQueeney, a managing partner and co-founder of Summer Street, in a statement.

Greenwich, Connecticut-based Champlain Advisors was the fund’s placement agent.

The fundraising took less than five months, said Terence Crikelair, managing partner at Champlain.

“It was a terrific fundraising, very well received, almost surprisingly so given the smaller fund size – which is a pretty interesting indicator of where LPs are looking for value these days,” Crikelair said.

“What really made Summer Street attractive was the depth of their team; they have 11 investment professional and that includes three operating partners,” Crikelair said.

Such extensive teams aren’t as prevalent in firms focused on the smaller market, he said. “I think that was very refreshing to LPs.” 

Founded in 1999, Buffalo, New York-based Summer Street makes both control and non-control investments ranging between $5 million and $30 million. The firm focuses on companies with revenues of $20 million to $100 million, but does not target specific sectors. Its previous investments include North American companies in the healthcare services, food services, and waste management sectors.

Summer Street manages approximately $300 million in capital.