Oversubscribed Fund Exceeds its Target of $800 Million and Closes at Hard Cap

LOS ANGELES, CA (May 10, 2023) – LightBay Capital (“LightBay” or the “Firm”), a Los Angeles-based private equity firm focused on high-quality service-based middle-market companies, today announced the successful close of LightBay Investment Partners II LP and its related vehicles (“LightBay Fund II” or the “Fund”) with total capital commitments of $1.04 billion. The oversubscribed Fund exceeded its target of $800 million and closed at its hard cap, attracting commitments from a diverse investor group which includes state and local pension funds, family offices, foundations, fund of funds, insurers, LightBay’s network of highly experienced industry executives, and LightBay professionals.

LightBay’s all-weather investment strategy allows the Firm to evaluate and pursue attractive risk-reward opportunities across the capital structure and through all economic cycles. LightBay Fund II will continue the Firm’s longstanding focus of partnering with best-in-class management teams across tech-enabled services, outsourced business-to-business services, healthcare services, HCIT, and consumer services, where investments in people, processes, and systems can lead to sustained competitive differentiation and accelerated growth.

LightBay has partnered with eleven companies and has successfully completed more than 140 add-on acquisitions since its inception. To date, LightBay has made two investments out of LightBay Fund II through the acquisitions of Clarion Home Services Group (“Clarion”) and Infinity Home Services (“Infinity”). Clarion, Infinity, and LightBay’s other partner companies actively work with LightBay’s Growth Operations Team, a group of tenured executives that draw on their extensive expertise in business intelligence, data analytics, digital transformation, human capital, mergers and acquisitions, and technology, to help advance each company through their respective Accelerated Growth Plans.

“We are extraordinarily grateful for the support from both existing and new investors and look forward to continuing to deploy LightBay Fund II to achieve successful outcomes for all of our investors,” said Nav Rahemtulla, LightBay Partner and Co-Founder. “LightBay Fund II will leverage our team’s deep domain expertise and thematic approach to identifying, partnering with, and accelerating the growth of market-leading companies. A fixed portion of LightBay’s fees and carried interest is contributed to The LightBay Foundation and the closing of LightBay Fund II enables us to deepen our impact on and support of local mission-driven organizations.”

“Today marks a significant milestone for LightBay,” added Adam Stein, LightBay Partner and Co-Founder. “We are proud of the continued growth of the Firm – this successful fundraising effort is a strong endorsement of the outstanding team we have built over the last six years. LightBay remains committed to investing in our people and culture and we believe that this dedication to our core values and differentiated strategy will benefit us, our investors, our partner companies, and our communities for years to come.”

UBS Investment Bank’s Private Funds Group acted as advisor and exclusive placement agent for LightBay. Kirkland & Ellis LLP served as legal counsel to LightBay.

About LightBay Capital

LightBay Capital is a Los Angeles-based growth-focused private equity firm that applies a flexible capital approach to middle-market investing. Primarily focused on the healthcare, consumer, and business services industries, LightBay invests across the capital structure and in all market environments to help accelerate the growth of high-quality companies. For more information, please visit www.lightbay.com. To discuss investment opportunities, please contact David Leeney at dleeney@lightbay.com.

About The LightBay Foundation

A fixed portion of LightBay’s fees and carried interest is contributed to The LightBay Foundation, which is focused on three core missions:  improving access to high-quality education, advancing and expanding access to healthcare, and addressing basic needs and skills training for underserved families. To learn more about the impactful causes that The LightBay Foundation supports, please visit www.lightbay.com/foundation.