Seaport Capital of New York, an investor in Municipal Communications, a company that develops, owns and operates cellular communications towers, primarily in the Southeast and Upper Midwest, has closed Seaport Capital Partners VI, a $240 million private equity fund.
Fund VI will continue Seaport’s 25-year investment approach, focusing on lower middle-market investment opportunities in the business and information services, communications services and media sectors, the company said. It said that the five Seaport partners, Scott McCormack, Bob Tamashunas, Drew Meyers, Bill Luby and Jim Collis, have worked with each other since 2003 and have over more than 100 years of combined investing experience in business and information services, communications services and media sectors.
“We greatly appreciate the support and partnership from our existing and new investors,” McCormack said. “With three investments, Fund VI is off to a strong start. We look forward to building and growing the current and future Fund VI portfolio companies with their management teams.”
Bob Tamashunas said that Seaport Capital identifies unique investment opportunities in the lower middle-market and partners with management teams to build companies with lasting legacies.
Seaport Capital Partners VI will invest in companies that meet Seaport’s investment criteria, which include recurring or contracted revenue, high organic EBITDA growth, strong operating leverage, unit-economics-driven business models and that operate in growing or fragmented industries, the company said. It said that almost all of Seaport’s portfolio companies were previously owned by founders or entrepreneurs seeking the right institutional partner to provide financial and operational resources to help successfully grow their businesses.
In addition to Municipal Communications, Seaport Capital Partners VI has invested in Exacom, which provides mission-critical multimedia recording software solutions to public safety and government customers, and in Family Entertainment Holdings, which produces family-oriented entertainment and events.
Seaport Capital Partners said that Fund VI’s investor base includes institutional investors, family offices, high-net-worth individuals and current and former portfolio company executives. Similar to Fund V, the company said, Fund VI received a commitment from the management of the general partner.
“Seaport typically invests $10 to $40 million of equity capital in companies generating EBITDA between $3 and $15 million, with the goal of maximizing the return on invested capital,” a statement from the company reads.