The firm’s fifth fund focuses on asset-based finance and opportunistic credit investments to provide flexible capital to niche and emerging companies with low correlation to mainstream markets.
PALM BEACH, Fla., June 7, 2024 — Harlan Capital Partners (“Harlan Capital” or the “Firm”), a leader in opportunistic private credit investments, announced today the successful close of Harlan Special Opportunities Fund V LP (“HSOF V” or the “Fund”) and its associated vehicles, raising approximately $130 million.
The new fund surpasses its predecessor, HSOF IV, which raised approximately $115 million.
HSOF V attracted a diverse group of investors, including family offices, high-net-worth individuals, wealth management firms, fund-of-funds, and nonprofit endowments. These investors share Harlan Capital’s vision of providing flexible capital solutions to niche and emerging companies and assets that have a low correlation to mainstream markets.
The Fund seeks to identify and exploit market inefficiencies by leveraging Harlan Capital’s proprietary network and extensive market expertise. It focuses on non-traditional companies, borrowers, and asset types across diverse sectors such as media, technology, telecommunications, and specialty finance. This approach is believed to position Harlan Capital as a leader in providing tailored financial solutions to underrepresented markets.
“We are thrilled to have raised $130 million for HSOF V, which we feel reflects our commitment to sourcing and investing in niche alternatives,” said Josh Harlan, Founder and Managing Partner of Harlan Capital. “We believe our deep experience in private credit enables us to navigate and capitalize on the current market landscape and provide our investors with unique opportunities that are uncorrelated to mainstream markets. We look forward to the opportunities ahead and remain committed to identifying and investing in unique and underrepresented markets.”
Harlan Capital is investing HSOF V’s capital in high-growth sectors, including technology, media, and intellectual property. Notable investments include:
- Connext Networks: A rapidly growing fiber-to-the-home network targeting over 100,000 homes in the Interstate 15 corridor outside Salt Lake City.
- Collective Ace Group: An innovative video game aggregator acquiring and operating leading independent video game development studios and game IP.
- Gray Cube Sports: A specialty finance platform providing structured credit to soccer teams collateralized by non-traditional revenue streams such as player transfer fee receivables.
- Augusta Distillery: Kentucky Bourbon inventory finance facility in partnership with the distillery that won Best Bourbon in the World for 2023 at the San Francisco World Spirits Award.
The Firm believes the pullback in bank financing, rising interest rates, and increasing demand to monetize intellectual property, make the closing of HSOF V timely. With 13 years of experience investing in niche alternative assets and lower middle market companies, Harlan Capital believes to be positioned well to navigate and succeed in the current market environment.
ABOUT HARLAN CAPITAL PARTNERS
Harlan Capital Partners is an investment advisory firm formed in 2010 by Joshua D. Harlan and Leonard M. Harlan. Headquartered in Palm Beach, FL, Harlan Capital focuses on asset-based finance and opportunistic credit investments in niche and emerging asset classes and business models within the lower middle market. For more information, please visit www.harlancapital.com.
SOURCE Harlan Capital Partners
