Banner Capital Announces Fund I Recapitalization and Launch of Fund II

SALT LAKE CITY, June 5, 2025 /PRNewswire/ -- Banner Capital Management, LLC ("Banner") is pleased to announce the closing of a portfolio recapitalization into Banner Capital Fund I ("Fund I") and the launch of Banner Capital Fund II ("Fund II"). 

Fund I

Fund I is a multi-asset continuation fund with over $400 million in capital commitments, formed to acquire interests in eight of Banner's pre-fund portfolio companies. Funds managed by Hamilton Lane (NASDAQ:HLNE) acted as lead investor and many of Banner's pre-fund investors retained a meaningful interest in the portfolio companies via participation in the new vehicle. The transaction was designed to provide additional time and capital to each portfolio company while also offering partial liquidity to pre-fund investors and crystalizing performance.

Tanner Ainge, Founder & CEO of Banner, said, "We are excited to welcome Hamilton Lane as an investor in Fund I, alongside our long-time partners. 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 on the Secondary Investment Team 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."

Fund II

Following the close of Fund I, which has unfunded capital reserved solely for follow-on investments, Banner is also pleased to announce the launch of Fund II, a lower middle market buyout fund with a $200M target. Banner held a preliminary closing on Fund II to facilitate the recently-announced Western Pavement Services transaction. The Larry H. & Gail Miller Family Foundation, along with certain other legacy LPs, participated in this deal-driven closing. A traditional first closing is anticipated in Q4 2025.  

Tyler Price, Managing Director of Banner, stated "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."

Advisors

Banner was advised by Harris Williams as financial advisor and Kirkland & Ellis LLP as legal counsel on the transaction. Hamilton Lane was advised by Debevoise & Plimpton LLP.

About Banner Capital

Banner Capital Management, LLC is a private equity firm focused on providing partnership capital to family-owned and founder-led businesses across the Western United States. The firm invests in the industrial, services, consumer, and healthcare sectors.

As of the closing of the Fund I transaction, Banner has $653 million in assets under management (AUM)*

For more information, visit www.bannercap.com.

* The reported AUM figure includes (i) the 12/31/2024 valuations for the portfolio company securities managed by Banner at that time, plus (ii) the cost basis of the Western Pavement Services transaction which closed on 4/30/2025, plus (iii) the cost basis of an acquisition by Averra Holdings in connection with the Fund I closing, plus (iv) the value of the securities of certain rollover holders or co-investors which were contributed into Fund I, plus (v) the unfunded commitments which were received in connection with the Fund I transaction.

This press release does not constitute an offer to sell, or the solicitation of an offer to purchase any security. Any investment involves substantial risks, including complete loss of capital. There can be no assurance that Banner will be able to implement the strategy described herein or, if implemented, it will lead to investor returns. Similarly, there can be no assurance Banner will be able to maintain the advantages discussed herein over time or outperform third parties or the financial markets generally. There can be no assurance that historical trends will continue. Certain information contained herein constitutes "forward-looking statements." Forward looking statements are subject to a number of known and unknown risks and uncertainties, including without limitation changes in economic conditions, political changes, international conflicts, legal and regulatory requirements, interest rate fluctuations, as well as changes in the markets, prospects and competition. Fund II only will be offered to qualified investors through its private placement memorandum and agreement of limited partnership, which contain a discussion of important risks and potential conflicts of interest, and this press release is qualified in its entirety by reference to such documents.

About Hamilton Lane

Hamilton Lane (NASDAQ:HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 760 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has approximately $958 billion in assets under management and supervision, composed of more than $138 billion in discretionary assets and more than $819 billion in non-discretionary assets, as of March 31, 2025. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit http://www.hamiltonlane.com or follow Hamilton Lane on https://www.linkedin.com/company/hamilton-lane/.

View original content to download multimedia:https://www.prnewswire.com/news-releases/banner-capital-announces-fund-i-recapitalization-and-launch-of-fund-ii-302474485.html

SOURCE Banner Capital Management