In a bold move that signals a shift in private equity dynamics, Align Capital Partners has successfully closed its first-ever independent sponsor-focused fund, raising $233 million—far exceeding its initial $150 million goal.

The fund, named Align Collaborate Fund I LP, launched in late 2023 and finalized its closing on Wednesday, marking a milestone for the firm as it deepens its commitment to deal-by-deal investing.

A Changing Landscape in Private Equity

Unlike traditional private equity funds that amass capital upfront to invest directly into portfolio companies, Align Capital is targeting a rapidly growing sector: independent sponsor professionals—investors who secure funding on an as-needed basis rather than through a pre-committed pool.

“We are constantly looking for ways to innovate, yet stay true to our lower-middle market investing roots," said Rob Langley, co-founder and managing partner of Align Capital. "Align Collaborate is a great addition to the firm, and we are grateful for our investors’ support."

This strategy allows Align Capital to move quickly and provide value beyond just capital, catering to the unique needs of independent sponsors who operate outside the constraints of traditional fund structures.

A Fund Designed for Flexibility

Align Capital’s new strategy aims to support platform companies with earnings before interest, taxes, depreciation, and amortization (EBITDA) ranging from $2 million to $15 million.

According to the firm’s Thursday statement, the fund will target $10 million to $30 million equity investments per deal, offering flexible capital solutions to independent sponsors eager to capitalize on opportunities without waiting for traditional fundraising cycles.

"We are excited to have officially closed on our first fund exclusively dedicated to supporting sponsors that raise capital deal-by-deal,” said Michael Kornman, partner at Align Capital. "We believe our approach to this rapidly growing segment of private equity is truly distinctive."

A Strong Advisory Team

The fund’s success was bolstered by the guidance of Kirkland & Ellis LLP, with partners Daniel McQuade and Michael Wester leading the legal team for Align Capital.

As private equity fundraising continues to evolve, Align Capital’s $233 million inaugural fund serves as a testament to the growing demand for deal-by-deal investing strategies—a model that is reshaping how capital is deployed in the lower-middle market.