Shore Capital Partners Expands Its Investment Footprint with $850 Million in New Funds, Elevating AUM Beyond $14 Billion
In a year marked by strategic momentum and sector diversification, Shore Capital Partners (“Shore Capital” or “Shore”), a Chicago-based private equity firm known for its focus on lower-middle-market growth opportunities, announced the successful closing of two major funds totaling approximately $850 million in capital commitments. The closings include the firm’s sixth Healthcare Partners Fund (Healthcare Fund VI) and the second Shore Search Partners Fund (Search Fund II)—a milestone that underscores the firm’s sustained expansion and deep expertise across healthcare and microcap investments.
This dual closing builds on a series of successful fundraising rounds for Shore in 2025, including the earlier completion of its Food & Beverage Partners Fund III (F&B Fund III) in July. Collectively, these efforts have brought Shore’s total capital raised for the year to nearly $1.3 billion, a testament to the confidence investors continue to place in the firm’s proven approach to disciplined, partnership-driven investing. With these new commitments, Shore’s assets under management (AUM) have now surpassed $14 billion, a staggering increase from the approximately $1 billion AUM reported in 2019—representing one of the most impressive growth trajectories among private equity firms in the lower-middle market space.
A Story of Consistent Growth and Strategic Focus
The announcement marks not only a financial achievement but also a reflection of Shore Capital’s disciplined and scalable investment model. Since its inception, the firm has built a strong reputation for identifying niche opportunities within fragmented industries, where it partners closely with founders and management teams to accelerate sustainable value creation.
Over the past six years, Shore’s expansion has been driven by a combination of strategic foresight, operational excellence, and an unrelenting focus on relationship-based investing. To support this growth, the firm has significantly expanded its leadership structure and internal capacity, promoting more than 40 team members—including 15 senior investment professionals—and adding over 50 new colleagues across offices in Chicago and Nashville.
This internal scaling effort reflects Shore’s belief that sustainable growth begins with strong people. By deepening its bench of experienced investors, analysts, and operating partners, the firm has reinforced its ability to deliver consistent outcomes across diverse portfolios, from healthcare to consumer and business services.
“Our growth over the past six years reflects the strength of our team, our disciplined sector-focused strategy, and our continued commitment to serving founders and management teams in the lower-middle market,” said Justin Ishbia, Founder and Managing Partner of Shore Capital. “With three new funds closed this year, we continue to build on the depth and specialization that guide our investment approach. We remain focused on partnership, providing capital, strategic resources, and a culture of support that helps lower-middle market management teams grow faster with less risk.”
Healthcare Fund VI: Building on Two Decades of Industry Expertise
The Shore Capital Healthcare Partners Fund VI, which closed with more than $625 million in capital commitments, represents the latest evolution of Shore’s nearly two-decade focus on the healthcare sector. The fund is led by Founding Partner Ryan Kelley, alongside Partners Don Pierce and Chris Mioton, and is designed to identify and invest in promising healthcare businesses with revenues ranging between $5 million and $200 million.
Shore has long been recognized for its microcap healthcare investing strategy—a niche that allows the firm to support small but high-potential businesses that often fall outside the radar of larger private equity players. These companies, which can range from specialty medical services to healthcare IT, diagnostics, and physician practice management platforms, often benefit from Shore’s operational expertise, shared learning programs, and data-driven playbooks for scaling.
“Healthcare Fund VI represents the next chapter in Shore’s long-term commitment to the healthcare industry,” said Ryan Kelley, Founding Partner at Shore Capital. “We continue to see meaningful opportunities to invest behind strong operators and innovative businesses that are shaping the future of healthcare. The close of our sixth fund vintage builds on nearly two decades of microcap partnerships across the industry, demonstrating both the strength of our platform and the trust our partners place in Shore.”
In a market where healthcare remains one of the most resilient and rapidly evolving sectors, Shore’s focus on microcap opportunities provides a distinct competitive edge. The firm’s investment approach balances deep sector specialization with a collaborative model that promotes knowledge sharing across portfolio companies. This model not only accelerates performance but also builds long-term institutional resilience, allowing smaller healthcare organizations to compete effectively in a complex regulatory and economic environment.
Search Fund II: Empowering the Next Generation of Leaders
The second major closing, Shore Search Partners Fund II, secured nearly $225 million in capital commitments. This fund represents the next phase of Shore’s executive partnership strategy, which aims to empower experienced operators to identify, acquire, and scale promising microcap businesses through the traditional search fund model.
Partner Michael Aubrey and Partner Cameron Perkins lead Search Fund II, continuing the firm’s effort to bridge the gap between talented entrepreneurs and high-potential acquisition opportunities. The fund leverages Shore’s vast network, operational resources, and leadership development programs, giving participants access to a tested and repeatable playbook for success.
“At Shore, our focus has always been on empowering great people to build great businesses,” said Michael Aubrey, Partner at Shore Capital. “Search Fund II continues that legacy by equipping talented entrepreneurs with learnings from over 1,000 microcap partnerships and providing the tools, mentorship, and partnership to lead and grow successful companies.”
Search funds have become an increasingly important pathway for entrepreneurial investors who seek to acquire and operate established businesses rather than starting from scratch. By supporting this model, Shore plays a critical role in nurturing the next generation of business leaders, offering not only financial backing but also the operational infrastructure and mentorship that smaller firms often lack.
This initiative reflects Shore’s long-term view that leadership development is a key component of sustainable investing. The firm’s focus on mentoring operators, fostering innovation, and promoting responsible growth continues to distinguish it within the private equity ecosystem.
A Culture of Partnership and Performance
At the heart of Shore Capital’s success lies its partnership-oriented philosophy. Rather than pursuing short-term gains, the firm builds lasting relationships with founders, management teams, and operators who share its values and vision for growth. Shore’s investment model emphasizes collaboration, operational excellence, and shared learning—principles that have underpinned its success across more than 1,000 partnerships.
Each Shore portfolio company gains access to a suite of shared services and resources that include strategic planning, leadership development, recruitment support, and data analytics. This approach helps portfolio companies not only grow faster but also become more resilient in the face of market volatility.
Furthermore, Shore’s multi-sector diversification strategy—spanning healthcare, food and beverage, business services, and industrials—has strengthened its ability to weather economic shifts while maintaining a sharp focus on operational execution. The firm’s growing AUM base provides additional scale to deepen its platform, enhance its value-creation capabilities, and pursue innovative investment structures that align incentives between investors and operators.
Institutional Confidence and Market Validation
The fundraising momentum Shore Capital has achieved in 2025 is also a clear signal of institutional investor confidence in the firm’s disciplined and repeatable model. The success of Healthcare Fund VI and Search Fund II follows the robust reception of F&B Fund III earlier in the year—collectively positioning Shore as one of the most active and trusted players in the lower-middle-market investment space.
Legal counsel for the fundraising efforts was provided by Kirkland & Ellis LLP, a longstanding advisor to Shore. Notably, the firm did not use a placement agent for these raises—an indication of the deep relationships and direct investor trust it has built over the years.
As Shore Capital looks to the future, its emphasis remains firmly on long-term partnership, disciplined growth, and operational excellence. The firm’s leadership sees continued opportunities in sectors undergoing consolidation and transformation, particularly in healthcare services, data-driven consumer businesses, and technology-enabled operations.
With over $14 billion in assets under management and a robust team across Chicago and Nashville, Shore is well-positioned to continue its trajectory of expansion. The addition of new funds and the continuous scaling of its talent base ensure that the firm can pursue increasingly complex opportunities while maintaining the nimbleness that has long defined its approach.
In the words of Justin Ishbia, “At Shore, success has always come down to people. Our ability to grow alongside our partners and support their ambitions is what drives us. As we continue to raise capital and build specialized funds, our focus will remain on helping entrepreneurs and management teams reach their full potential—faster and with greater impact.”
From its modest beginnings to its current position as a multi-billion-dollar investment platform, Shore Capital Partners’ journey exemplifies what’s possible when disciplined investing meets a relentless commitment to partnership. With its newest funds now closed and a clear roadmap for the years ahead, the firm stands poised to shape the next chapter of growth in the lower-middle-market landscape.
