Banner Capital Closes $400M Fund I, Introduces $200M Fund II

Key Takeaways

Sector: Consumer, Healthcare Healthtech & Medtech, Industrials.
Geography: United States.

Analysis

Banner Capital Management has successfully recapitalized eight of its pre-fund portfolio companies into a $400 million continuation vehicle, Banner Capital Fund I, L.P. The firm has concurrently launched Banner Capital Fund II, L.P., targeting $200 million to invest in lower middle-market buyouts across the Western United States.

Hamilton Lane (NASDAQ: HLNE) served as the lead investor in Fund I, with significant participation from Banner's existing investors. The continuation fund provides additional time and capital to the portfolio companies while offering partial liquidity to earlier investors.

"We are excited to welcome Hamilton Lane as an investor in Fund I, alongside our long-time partners," said Tanner Ainge, Founder and CEO of Banner Capital. "We remain strong believers in the companies and leadership teams that are part of Fund I and are grateful to have more time to fully realize the value created—while also providing early investors with interim liquidity."

Ryan Smith, Managing Director at Hamilton Lane, added, "We are proud to support these Banner portfolio companies through this next phase of growth. This transaction underscores Hamilton Lane's innovative approach, significant scale, and deep experience in delivering strategic solutions for both GPs and LPs while facilitating long-term value creation."

Following the close of Fund I, Banner Capital held a preliminary close of Fund II in May 2025 to support the formation of Western Pavement Services and the acquisition of Roadrunner Paving and Asphalt Maintenance. The Larry H. & Gail Miller Family Foundation, along with other legacy limited partners, participated in this initial closing.

"The target size for Fund II, along with our initial investment in Western Pavement Services, underscores Banner's deep commitment to the lower middle market, the Intermountain West, and to supporting founder- and family-owned businesses," said Tyler Price, Managing Director at Banner Capital.

Banner Capital focuses on investments ranging from $15 million to $60 million in family-owned and founder-led companies within the consumer, industrial, and healthcare services sectors. As of the closing of Fund I, the firm reports $653 million in assets under management.

The formal first close of Fund II is anticipated in the fourth quarter of 2025.