Pritzker Private Capital (PPC), the investment firm co-founded by Illinois Governor JB Pritzker and his brother Tony, has successfully closed its fourth fund, PPC IV, raising a record $3.4 billion. This achievement surpasses the fund's initial target of $3 billion, as announced on Tuesday. A significant portion, approximately 17%, of the funding came from the firm's own members and related entities, with the remaining capital contributed by a diverse group of other families and institutional investors from North America, Asia, Europe, and Latin America.

This substantial capital raise by PPC adds to a series of successful fund closures by Chicago-based investment firms over the past year. Notable examples include Shore Capital Partners, led by billionaire Justin Ishbia, which secured $1.9 billion across three new funds in October, in addition to another $450 million for a vehicle dedicated to the food and beverages sector. Mesirow Financial Inc. also closed its fifth real estate fund with over $1.2 billion in May, and Madison Dearborn Partners is currently seeking $3 billion for its newest fund.

Despite a more challenging overall fundraising environment, characterized in part by high interest rates, PPC managed to close its new fund, highlighting its resilience. The PPC IV fund also significantly eclipsed the $2.7 billion raised by the firm's previous fund, which closed in 2021. Tony Pritzker, the firm's Chief Executive Officer, expressed gratitude, stating, "We sincerely appreciate the continued support from our returning investors and are excited to welcome new investors to the PPC family."

Pritzker Private Capital primarily invests in North American middle-market companies, with a focus on the manufacturing products and services sector. To date, PPC has deployed over $10 billion in total capital. The newly closed PPC IV fund has already made three initial investments: in Chicago-based HeartLand, a commercial landscaping company; Americhem, a chemical manufacturer located in Ohio; and Buckman, a Tennessee-based chemical water treatment company.

The Pritzker family's wealth was largely established through the Hyatt hotel brand, founded by Jay Pritzker, uncle to JB and Tony Pritzker. It is important to note that JB Pritzker has been focused on his political career and has had no involvement with PPC since 2017.