CenterGate Closes $375M Sophomore Fund for Lower Mid-Market Companies

CenterGate Capital, a lower middle market private equity firm, has held the final closing of its sophomore fund, CenterGate Capital Partners II, amassing more than $375 million of capital, exceeding its initial target.

The Austin, TX-based firm secured commitments for the fund from a diversified investor base, including pension funds, endowments, foundations, family offices, asset management firms and financial institutions.

“With Fund II, we will continue our focus on control investments that transform lower middle market companies in North America,” said Tiffany Kosch, CenterGate managing partner.

CenterGate has completed twelve platform investments, 18 add-on acquisitions, and has grown to a team of over 20 people since inception.

The firm, which manages more than $740 million, previously invested in equipment maintenance business Mid-State Industrial Maintenance. Specific details on the size of the deal were not disclosed, but the investor typically backs companies with $20 million to $250 million of revenue.