Shore Capital Finalizes Second Industrials Fund
Chicago-based private equity firm Shore Capital Partners (“Shore Capital” or “Shore”) has announced the successful close of its second Shore Capital Industrial Partners Fund (“Industrials Fund II”), raising more than $400 million in capital commitments. The fund attracted strong interest from both existing and new limited partners, underscoring continued confidence in Shore’s sector-focused investment strategy and disciplined approach to value creation.
With offices in Chicago and Nashville, Shore Capital has built a reputation for partnering with founder-led and family-owned businesses in fragmented industries characterized by durable demand. The close of Industrials Fund II represents a significant milestone for the firm and reinforces its long-term commitment to the industrial sector.
Building on the Momentum of the Inaugural Industrials Fund
Industrials Fund II builds directly on the success of Shore Capital’s inaugural Industrials fund, which closed in July 2023. That first fund established a foundation for Shore’s industrial strategy, enabling the firm to launch multiple platform investments across a diverse set of industrial and infrastructure-adjacent markets.
The new fund reflects both the performance of the initial Industrials vehicle and growing market conviction in differentiated playbook. By focusing on niche segments within large, fragmented industries, seeks to identify businesses with strong fundamentals, recurring demand, and opportunities for operational and strategic enhancement.
Leadership-Driven Strategy Anchored in Operational Excellence
Industrials Fund II is led by Founder and Managing Partner Justin Ishbia, alongside Partners John Sznewajs and Dan Spradling. Together, the leadership team brings deep experience in private equity investing, operational scaling, and management partnership.
“Industrials continues to be a natural extension of the playbook,” said Ishbia. “We’re seeing sustained tailwinds across multiple industrial sub-categories, and this fund allows us to be an even more intentional, long-term partner to founders and management teams. Our focus remains on investing in operational excellence, leadership development, and scalable infrastructure to help businesses grow faster while mitigating risk.”
Shore’s approach emphasizes collaboration with management teams, aligning incentives and building capabilities that support sustainable growth rather than short-term financial engineering.
Focus on Fragmented Industries with Durable End-Market Demand
Since entering the Industrials sector, Shore Capital has pursued opportunities across industries that benefit from long-term demand drivers, regulatory complexity, and mission-critical services. The firm has launched platform investments spanning a range of themes, including:
- Building services and infrastructure support
- Mission-critical industrial solutions
- Commercial HVAC and plumbing
- Residential roofing and building envelope systems
- Automation systems integration
- Electrical safety and compliance services
These sectors share common characteristics: fragmented ownership structures, essential services, and the potential to benefit from professionalization, scale, and operational best practices.
Target Investment Areas for Industrials Fund II
Industrials Fund II will continue disciplined investment strategy, targeting niche industrial businesses with recurring or resilient demand profiles. The fund will prioritize companies operating in markets where Shore believes its operational expertise and shared resources can drive meaningful value creation.
Key focus areas include:
- Infrastructure-adjacent services
- Environmental and safety solutions
- Building envelope and access systems
- Specialized maintenance and repair services
Within these categories, Shore is selectively evaluating opportunities across a broad range of subsectors, including residential overhead doors, utility services, traffic management, environmental services, flow control and filtration, aviation maintenance, repair, and overhaul (MRO), and other specialized industrial service markets.
Proprietary Sourcing and Long-Term Sector Theses
According to Partner John Sznewajs, the strong limited partner interest in Industrials Fund II reflects the consistency and depth of opportunity continues to see across its targeted industrial markets.
“Our sourcing is driven by long-term sector theses and proprietary relationships,” said Sznewajs. “This approach allows us to identify high-quality businesses early and engage with founders and management teams from a position of alignment and trust. We believe this is a key advantage in competitive markets.”
Shore’s investment model prioritizes relationship-driven sourcing rather than auction-based processes, enabling the firm to partner with businesses that share its long-term vision.
Differentiated Post-Investment Value Creation
Partner Dan Spradling highlighted emphasis on post-investment execution as a defining element of its Industrials strategy.
“What differentiates Shore in Industrials is how we support value creation after the investment,” said Spradling. “Our experience across multiple verticals, combined with shared operational resources and executive networks, enables us to help management teams professionalize their organizations, implement scalable systems, and execute growth strategies with confidence.”
Shore leverages centralized resources across talent development, technology, finance, and operational improvement, allowing portfolio companies to benefit from institutional capabilities while maintaining entrepreneurial cultures.
Strong LP Support and Efficient Fundraising Execution
Industrials Fund II received significant backing from Shore Capital’s existing limited partner base, reflecting long-standing relationships and trust built across multiple funds and strategies. The fund also attracted new investors seeking exposure to the industrial sector through a focused, operationally driven private equity platform.
Notably, Shore Capital did not use a placement agent in connection with the fundraise, underscoring the strength of its direct relationships with limited partners.
Kirkland & Ellis LLP served as legal advisor to Shore Capital on the fundraising.
Positioning for Continued Growth in Industrials
With the close of Industrials Fund II, Shore Capital is well positioned to expand its footprint across the industrial landscape. The firm’s focus on essential services, fragmented markets, and operational value creation aligns with broader infrastructure, construction, and industrial investment trends.
As Industrials Fund II begins deployment, Shore Capital plans to deepen partnerships with founders and management teams, reinforcing its long-term commitment to building resilient, scalable industrial businesses.
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