HARLAN CAPITAL PARTNERS LLC

Thesis

Founded in 2010 and headquartered in Palm Beach, Florida, Harlan Capital Partners LLC is a private investment firm that targets 'inefficient, fragmented markets' and 'niche, emerging asset classes' with limited competition. Their investment strategy focuses on opportunities uncorrelated to mainstream markets, often found at the 'edge of unbundling' where legacy systems are breaking down. They invest in smaller, less standardized opportunities backed by contractual claims on cash flow or predictable asset values. Their core investment domains include Media, Sports & IP (focusing on attention, fandom, and rights), Specialty Finance (targeting unconventional financial assets too small or complex for traditional markets), and Real Assets. The firm provides tailored growth capital and business sale solutions, acting as a lender/debt provider offering growth/expansion capital, mezzanine financing, and secondary buyer services. They review approximately 1,000 opportunities annually, focusing on 4-6 new deals. Harlan Special Opportunities Fund V closed in June 2024 with $130 million, and its predecessor, HSOF IV, raised $115 million. While specific total AUM is not disclosed, the fund sizes indicate a growing capital base. They invest in companies with $0-$5M EBITDA, suggesting a focus on the lower middle market, though specific check sizes are not stated. The firm is actively seeking new investments.