Seven Hills Capital Closes $235M Sophomore Fund

Oversubscribed fund reaches hard cap in under 3 months, building on success of inaugural $125M fund

Published on Feb. 27, 2026

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Seven Hills Capital, a Nashville-based private equity firm focused on healthcare services, has closed its oversubscribed sophomore fund at $235 million. The fund, Seven Hills Capital Fund II, L.P., reached its hard cap in less than three months, just two years after the firm's successful $125 million fundraising for its inaugural fund.

Why it matters

The rapid fundraising success of Seven Hills Capital's second fund highlights the firm's strong track record and the continued investor appetite for healthcare-focused private equity opportunities, especially in the lower middle market. The firm's operator-centric approach and internal Strategic Performance Group to support portfolio companies are seen as key differentiators.

The details

Founded in 2016, Seven Hills is a private equity firm that takes a hands-on, operator-centric approach to investing in lower middle market healthcare services companies. The firm's Strategic Performance Group provides institutional-level resources to help accelerate the growth and development of its portfolio companies. Fund II attracted capital from a diverse group of institutional investors, including endowments, foundations, family offices, and outsourced CIOs.

  • Seven Hills Capital was founded in 2016.
  • The firm's inaugural $125 million fund was raised in 2024.
  • Seven Hills Capital Fund II, L.P. closed at its $235 million hard cap in February 2026.

The players

Seven Hills Capital

A Nashville-based private equity firm focused on investing in lower middle market healthcare services companies.

Matthew Pettit

The founder of Seven Hills Capital.

Pacenote Capital LLC

The exclusive placement agent for both of Seven Hills Capital's funds.

McGuireWoods LLP

The law firm that provided legal counsel for the fundraising.

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What they’re saying

“We built SPG to bring institutional-level resources to entrepreneurial businesses -- without losing the culture that made them successful. Nashville's vibrant healthcare and entrepreneurial ecosystem has allowed SPG to be built with local subject matter experts working alongside SHC's investment team and Partner Companies.”

— Matthew Pettit, Founder, Seven Hills Capital (Business Wire)

“We are humbled to have received such strong support from new and existing investors who share our enthusiasm for building best-in-class healthcare businesses.”

— Matthew Pettit, Founder, Seven Hills Capital (Business Wire)

“We are grateful for the outstanding work by Pacenote, both in identifying exceptional long-term investors to support our mission and for their conviction in us as investors.”

— Matthew Pettit, Founder, Seven Hills Capital (Business Wire)

What’s next

Seven Hills Capital plans to continue its focus on investing in lower middle market healthcare services companies, leveraging its Strategic Performance Group to support the growth and development of its portfolio.

The takeaway

Seven Hills Capital's rapid fundraising success for its second fund highlights the firm's strong track record and the continued investor appetite for healthcare-focused private equity opportunities in the lower middle market. The firm's operator-centric approach and internal resources to support portfolio companies are seen as key competitive advantages.