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Sole Source Capital raises $555 million for second fund

Sole Source Capital, an industrial-focused private equity firm, has closed its second fund, SSC Partners II or “Fund II”, with aggregate total commitments of $555 million.

Fund II was significantly oversubscribed with an initial target of $400 million and reached its hard cap. With the closing of Fund II, Sole Source Capital now manages in excess of $1 billion just three years after the launch of Fund I.

Since 2016, Sole Source has completed 24 transactions focusing on driving rapid value creation in lower middle market companies.

The firm is often the first institutional capital partner for its portfolio companies and seeks to drive significant operational transformations within sectors experiencing secular tailwinds, including warehouse automation, barcoding and food distribution.

So far, Fund II has completed 10 total transactions, including add-ons, across three portfolio companies:

  • Dallas Plastics (acquired October 2020), a leading manufacturer of blown polyethylene film with printing, embossing and other value-add capabilities.
  • Peak Technologies (acquired April 2021), a leading IT services and hardware provider of supply chain automation solutions.
  • ID Images (acquired August 2021), a leading manufacturer of secondary labels.

Investors in Fund II include public and corporate pension funds, investment consultants, financial institutions, healthcare plans and hospitals, insurance companies, endowments and foundations, fund-of-funds, RIAs and family offices from North America, Europe and Asia.

Sumil Menon, head of investor relations for SSC, says: “We are grateful to have garnered such strong support among our highly respected, global base of investors.”

David Fredston, Founder and CEO added, “We believe Sole Source Capital’s investment process and commitment to human capital and data analytics can deliver great results, and we are humbled to have our limited partners investing alongside us.”

Gibson Dunn LLP served as legal counsel and Eaton Partners, a Stifel company, served as the exclusive placement agent.

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