Seven Hills Capital Closes $235 Million Healthcare-Focused Private Equity Fund

The oversubscribed Fund II reached its hard cap in less than three months.

Mar. 3, 2026 at 7:39am

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Seven Hills Capital, a Nashville-based private equity firm focused on healthcare services, announced the first-and-final closing of its $235 million Fund II. The new fund follows the firm's $125 million Fund I raised two years ago and will continue its strategy of investing in and supporting entrepreneurial healthcare businesses.

Why it matters

The successful fundraise for Seven Hills Capital's second fund highlights continued investor appetite for healthcare-focused private equity strategies, especially those that take a hands-on, operator-centric approach to building businesses and improving patient, payor, and provider outcomes.

The details

Seven Hills Capital's Fund II attracted capital from a range of institutional investors, including college and university endowments, foundations, family offices, and outsourced CIOs. The firm's internal Strategic Performance Group provides operational support and expertise to portfolio companies, leveraging Nashville's vibrant healthcare ecosystem.

  • Seven Hills Capital announced the closing of its $235 million Fund II on February 28, 2026.
  • The firm's previous $125 million Fund I was completed two years ago.

The players

Seven Hills Capital

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

Matthew Pettit

Founder of Seven Hills Capital.

Pacenote Capital

The exclusive placement agent for both Fund I and Fund II.

McGuireWoods

The law firm that provided legal counsel in connection with the Fund II 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 Of Seven Hills Capital

“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 Of Seven Hills Capital

“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 Of Seven Hills Capital

The takeaway

Seven Hills Capital's successful fundraise for its second healthcare-focused private equity fund demonstrates the continued investor appetite for strategies that take a hands-on, operator-centric approach to building businesses and improving patient, payor, and provider outcomes in the healthcare sector.