HCAP Fund II, L.P.

United States of America

Last updated 12 May 2020, by Impactyield.

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Founded in 2000, HCAP Partners LLC ("HCAP", formerly Huntington Capital) is a private equity firm focused on the lower middle market with a mission to generate top quartile returns while having a positive impact on underserved businesses and their communities. These results are evident in our financial performance and impact metrics. HCAP will continue its strong impact investing focus to provide good quality jobs with employee benefits through its portfolio companies for low to moderate income employees and the extension of companies operations into underserved communities thereby supporting a diverse workforce of LMI individuals and families. HCAP provides capital to “underserved” businesses that tend to employ low-to-moderate income and ethnic minority employees, are located in LMI zones, and/or are owned and operated by ethnic minorities. The Fund primarily provides growth capital, structured as Mezzanine Debt and/or Preferred Equity. The Fund's performance has allowed it to return 58% of all called capital and 45% of all committed capital within 7 years as of 6/30/15. The Fund has achieved an approximately 8% net IRR for Limited Partners since inception and 1.33x net cash investment multiple.

Financial description

The principle objective of The Fund is to generate above average risk adjusted returns for our investors, provide the investment capital and resources to help our portfolio companies maximize their performance and enterprise value, and create a positive impact within the communities which we invest.
HCAP Fund II reports a Gross IRR through 6/30/15 of 15.59% and Net IRR of 8.02% including all Fees, Expenses and estimated GP Carry. As of 6/30/15 The Fund has returned 58.8% of all called capital and 44.5% of all committed capital (Vintage 2008 Fund).
The investments will generally be structured as mezzanine capital, and typically be in the form of loans in the $2 million to $7 million range. The Fund also provides growth capital in the form of preferred stock. Funds are typically used for growth oriented working capital, recapitalization, acquisition or for capital investment.

16 years

of track record


the year funded



Asset manager

HCAP Partners


Headquarters location:

Other funds managed by this asset manager: HCAP Fund III L.P.

SDG goals

SDG targets

Eradicate extreme poverty

Encourage companies to adopt sustainable practices and sustainability reporting

Double the improvement in energy efficiency

Expand and upgrade energy services for developing countries

Promote policies to support job creation and growing enterprises

Full employment and decent work with equal pay

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: HCAP Partners

Product track record: Fund has 16 years of track record

Target IRR: 15%

Committed Capital: 78,285,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage: ,

Inception year: 2007

Vintage year: 2008

Target region: , , ,

Target close date: n.a.

Product term: 10 year term

Assets under management: n.a.

Investment size: Min: 2,000,000; Max: 7,000,000; Avg: 3,500,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 23

Fund investments to date exited or repaid: 13

Management fee: 2%

Carried interest: 20%

Hurdle rate: 8.0%%

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: Hamilton Lane (CalPERS), INVESCO (CalSTRS), Credit Suisse(CalPERS), Macquarie NM Fund II (Northwestern Mutual Life), Allstate, State Farm, SAFECO, Pacific Life, Union Bank, and the FB Heron Foundation.

Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors, Retail Investors


E-mail: n.a.

Website: http://www.hcapllc.com

Phone number: 8582597654.00

If you wish to have your details removed from this database please email gdpr@impactyield.com

Impact Performance


Impact thesis

HCAP is a mezzanine debt and structured equity fund focused on the lower middle market with a mission to generate top quartile returns while having a positive impact on underserved businesses and their communities through the provision of good quality jobs with benefits for individuals at the LMI level. The Fund places a particular emphasis on companies located in low and moderate income areas (“LMIs”) and companies employing individuals residing in low and moderate income areas. Fund management believes these companies are underserved by private equity, venture capital and public markets and offer the potential for above average returns while benefiting the communities they do business in. Equally important, our portfolio company employees represent the diversity of the communities we invest in.

Impact Management