American Discovery Capital (ADC), a leading merchant bank specializing in founder-led and family-owned companies in the lower middle market, has announced the final closing of its second fund, American Discovery Fund II (ADF II), at $190 million. This represents a significant increase over its first fund, ADF I, which closed in 2019 at $60 million and included investments in six portfolio companies and 17 add-on acquisitions. Continuing its focus on the business services and software sectors, ADF II has already completed three investments and is actively seeking additional opportunities. The fund received commitments from a diverse group of limited partners, including significant reinvestments from previous investors and new contributions from wealth managers, family offices, and high net worth individuals. Notably, over 17% of the commitments originated from ADC’s partners and employees, emphasizing the firm’s long-term, relationship-driven approach. ADC’s unique merchant banking model provides proprietary investment opportunities through its extensive network, aligning incentives across all stakeholders. Kirkland & Ellis served as legal counsel for ADC.

Private Equity, Business Services, Software,United States