New State Closes $700M Mid-Market Buyout Fund

New State Capital Partners has closed its fourth middle market private equity buyout fund, raising $700 million in less than six months. This amount exceeded the fund’s initial $600 million target and pushed the firm’s total capital raised since its founding to $1.8 billion.

The oversubscribed fund drew a broad mix of investors, including endowments, family offices, public pension plans, insurance companies, outsourced CIOs (OCIOs), and high-net-worth individuals from North America and Europe. Notably, New State’s professionals chipped in $60 million through the general partner.

David Blechman, the New Rochelle, NY firm’s founder, emphasized that this achievement highlights confidence in New State’s strategy of investing in and growing founder-led businesses while maintaining a disciplined focus on value creation.

With over 45 acquisitions under its belt, New State stands out with a unique sourcing approach, leaning on ties with the independent sponsor community to uncover promising opportunities. The firm’s 34-person team includes 12 management company partners and a 10-person in-house operations crew. The firm recently hired a VP for the investment team, a senior principal for strategy, and an operating partner focused on revenue growth.

New State Capital Partners’ Fund IV follows the success of its oversubscribed predecessor, Fund III, which wrapped up in 2021 with $450 million. The firm targets North American companies with EBITDA between $8 million and $40 million

Kirkland & Ellis LLP served as fund counsel, and Harris Williams Private Capital Advisory Ltd. served as placement agent.