Gainline Closes $400M Sophomore Fund for Lower Mid-Market Companies
Emerging manager Gainline Capital Partners, a private equity firm that invests in US-based lower middle-market companies, has closed its $400 million hard cap for its second fund, Gainline Equity Fund II LP, easily exceeding its $300 million target despite a challenging fundraising environment.
The new fund is more than double the size of its $155 million debut vehicle raised in 2019.
Gainline has already deployed $106 million in two Fund II investments; the firm had an initial, early close of Fund II, in the fall of 2021. With the close, it now has $1.3 billion of assets under management across its two funds along with investor and management co-investments.
Gainline was founded in 2015 by former CAI Private Equity managing partner Allan Weinstein and ex-Lincolnshire Management investor Rick Sullivan. The pair worked together for years at Lincolnshire before Weinstein’s shift to CAI in 2012.
Recent deals from the firm have included a majority stake in Texas electricity company Flagship Power from Utility Rescue Holdings.
Credit Suisse acted as placement agent for Gainline Equity Fund II LP and Willkie, Farr & Gallagher LLP provided legal counsel.