By Nora Hastings, Senior Correspondent
June 10, 2025 – New York – Churchill Asset Management, a leading private equity firm, has successfully closed its second co-investment fund, securing a remarkable $1.5 billion at its upper fundraising limit. The fund is set to focus on providing capital to middle-market companies across a range of industries, with a special emphasis on sectors ripe for growth and transformation.
Strong Investor Confidence
This significant fundraising effort signals robust investor confidence in Churchill’s investment approach, especially in a climate where private equity plays an increasingly pivotal role. The announcement marks a key milestone for the firm as it looks to deploy capital in a disciplined and strategic manner to drive long-term value in its portfolio companies.
Churchill’s commitment to sectors primed for substantial development aligns with the broader trends in the economy, where businesses poised for digital transformation and operational scaling are expected to see rapid expansion. The firm has identified a growing appetite for targeted investment in these industries and intends to leverage its vast experience in the middle-market space to create lasting value.
Investment Strategy: Focus on Growth Sectors
The fund will primarily target middle-market companies, defined as those with annual revenues ranging from $50 million to $1 billion. Churchill’s investment strategy will revolve around identifying and capitalizing on opportunities that align with its investment philosophy: long-term value creation through operational improvements, strategic growth initiatives, and value-enhancing transformations.
According to managing director, Andrew Cohen, “The sectors we are targeting for this fund include technology, healthcare, and industrials – all areas undergoing substantial change. These industries offer exciting opportunities, driven by both innovation and market shifts.”
The firm’s seasoned leadership team will work closely with the management teams of its portfolio companies, offering operational expertise and strategic guidance to unlock their full potential. Churchill’s hands-on approach is designed to help its investments thrive even in challenging market conditions.
A Shifting Private Equity Landscape
The successful close of Churchill’s $1.5 billion fund comes at a time when private equity remains one of the most attractive investment vehicles, especially in a post-pandemic world where companies continue to navigate shifting market demands and evolving business models. Investors have shown increasing interest in funds that promise resilience and adaptability in an uncertain economic climate.
“The broader appeal of private equity has grown as investors seek higher returns and a hedge against volatility in the public markets,” said Elizabeth Parker, an expert in private equity at JDM Investments. “Churchill’s strategy, focusing on middle-market companies, aligns perfectly with the growth trends we’re seeing across various industries. Their ability to navigate these shifts while delivering value makes this fund particularly appealing to institutional investors.”
Deployment Strategy and Expectations
With the closing of the fund, Churchill Asset Management plans to begin deploying capital into new and existing investments immediately. The firm has stressed that its investment approach will remain disciplined, with a rigorous due diligence process ensuring that each opportunity meets the firm’s high standards for risk-adjusted returns.
In the coming months, Churchill expects to announce several new investments from this fund. The firm will continue to target businesses that are on the brink of transformation, whether through innovative product offerings, geographic expansion, or operational enhancements.
Private Equity in 2025: Looking Ahead
As the global economy continues to recover from the disruptions of the COVID-19 pandemic, private equity firms are playing a critical role in financing the growth and stability of middle-market companies. Churchill’s latest fund is a testament to the resilience and adaptability of this investment class, which has gained significant attention from institutional investors looking for opportunities to capitalize on transformation-driven growth.
“We are entering a new phase of economic development, one that requires capital, expertise, and a clear vision for long-term success,” added Cohen. “This fund will enable us to work with ambitious companies at a time when they need partners who understand the challenges and opportunities of their industries.”
Key Takeaways:
-
Churchill Asset Management has closed its second co-investment fund, raising $1.5 billion.
-
The fund will target middle-market companies across industries like technology, healthcare, and industrials.
-
The firm’s disciplined approach and focus on sectors poised for growth have garnered strong investor confidence.
-
The fund is poised to create value by working closely with portfolio companies to achieve operational and strategic improvements.