Mosaic Capital Partners (“Mosaic”) announced the closing of its second fund with $205 million of total capital (including leverage). This is Mosaic’s 2nd Small Business Investment Company (“SBIC”) fund and will continue its exclusive focus on bringing broad-based employee ownership to exceptional lower middle market companies.

The successful close marks a significant milestone for Mosaic, demonstrating strong investor confidence in the firm’s employee ownership strategy and management team. The Fund received robust interest from a diverse investor base, including impact investors, institutional investors, commercial banks, and high net worth individuals, resulting in more than a 100% increase in private LP capital over Mosaic’s first fund.

Fund II continues Mosaic’s strategy of investing in business services, niche manufacturing, and consumer businesses with $5–$15 million of EBITDA through change of control transactions, including the formation of new Employee Stock Ownership Plan (ESOP) and Employee Ownership Trust (EOT) companies.

“We are pleased to see the investor community continue to support Mosaic’s unique broad-based employee ownership model,” remarked Mosaic Partner Ian Mohler. “Our team is committed to finding the best investment opportunities for our investors and building long-term wealth for workers while delivering attractive investment returns.”

Managing Partner Steve Buchanan noted, “We are grateful for the overwhelming support from our existing investors and pleased to welcome several new institutional investors into the fund.”

Winston & Strawn served as legal advisor to Mosaic.