About This Fund
Saothair Fund II, L.P. is the $300 million second private equity fund of Saothair Capital Partners, the Wayne, Pennsylvania-based firm founded in 2019 by former KPS Capital Partners executives Kevin Madden and Richard Lozyniak. Achieving its final close on July 3, 2025 — more than double the size of its $125 million predecessor fund — Fund II's oversubscribed fundraise reflects strong and growing institutional demand for Saothair's operationally intensive approach to manufacturing special situation private equity. As with Fund I, the investor base comprised leading college and university endowments, single- and multi-family offices, and outsourced CIOs, with the fundraise again handled by placement agent Pacenote Capital LLC.
Saothair Fund II continues the firm's exclusive focus on acquiring control stakes in lower- to middle-market manufacturing and industrial companies through complex, operationally driven transactions — including corporate carve-outs, out-of-court restructurings, bankruptcy acquisitions, and business turnarounds. Target investment sectors include paper and packaging, plastics, metals processing, automotive and heavy truck components, building products, healthcare-related products, food and beverage, and niche specialty manufacturing. The larger fund size in Fund II reflects both an expanded opportunity set at higher transaction values and Saothair's proven ability to source, execute, and improve complex manufacturing businesses that require deep sector expertise rather than financial engineering alone.
The rapid scaling from Fund I ($125M, closed October 2023) to Fund II ($300M, closed July 2025) in approximately 21 months places Saothair among the fastest-growing emerging managers in US manufacturing private equity. The fund is domiciled as a Delaware limited partnership and administered by IQ-EQ with legal counsel from McGuireWoods LLP, maintaining the institutional infrastructure established in Fund I. Saothair's co-founders' operational background from KPS Capital Partners — which has historically targeted manufacturing and industrial businesses across carve-outs and restructurings — provides the blueprint for Fund II's investment and value creation approach.