San Diego-based Huntington Capital, a provider of growth capital to lower-middle market companies, announced the final closing of its third fund, Huntington Capital Fund III L.P., with $91.7 million of total capital commitments.
According to Huntington, Fund III exceeds the prior fund raise of $78 million for Fund II and includes new and existing investors from state and pension systems, regional and money center banks, foundations, and family offices. Huntington has raised more than $210 million in total capital commitments across three funds since its inception in 2000, the company said.
Huntington says it is a leader in the emerging area of debt and equity “impact” funds that both earn favorable returns and help companies produce a positive social impact. To date, 80 percent of Fund III’s capital committed supports various companies’ efforts to increase the number and quality of jobs for low and moderate income individuals.
“Investors interest in Fund III demonstrates that it’s not enough to simply invest capital, it’s important to provide capital that results in sustainable financial performance and enhances the skills and quality of life of the workforce,” said Morgan Miller, Huntington’s managing partner. “Since the founding of our first fund in 2000...we have been investing in companies which positively impact communities in the western United States with much-needed, flexibly-structured growth capital.”
Huntington said it seeks to invest in established lower-middle market businesses generating between $10 million and $75 million in revenues across a broad range of industries. Investments typically are structured in the form of growth capital, buyout, or acquisition financing ranging between $2 million and $9 million. The firm has invested in approximately 50 companies since it was founded, and it proactively works with its portfolio companies to achieve favorable financial outcomes.