Madison River Capital Launches $370 Million Private Equity Fund Backed by Tony James Family Office

Madison River Capital, a private equity firm launched as a spinout from the family office of Blackstone Inc. veteran Tony James, has raised approximately $370 million for its debut fund. The fund targets buyout investments in small to mid-sized U.S. companies operating in the healthcare, industrials, and business services sectors.

Anchor Investment and Firm Background

The fund’s anchor investment of around $60 million came from Tony James, the former Chief Operating Officer of Blackstone. Madison River Capital was founded by David Wittels, who previously served as President of James’s family office, Jefferson River Capital. Wittels led the spinout of Madison River in early 2022. James continues to be involved indirectly, with his capital still managed through the firm.

The new fund marks a shift in the deployment of private capital for James, who stepped back from Blackstone in 2022 after a nearly two-decade tenure. Madison River also continues to manage some private equity assets on behalf of Jefferson River Capital.

Investment Activity and Strategy

Madison River made its first public investment in Senior Care Therapy, a healthcare services provider, in early 2024. It later disclosed a $70 million equity investment in JDC Power Systems, a company supplying technical services and infrastructure to data centers. These deals reflect the firm’s strategy of targeting lower middle-market transactions, where it sees favorable pricing dynamics due to a gap between capital supply and demand.

As of 2025, Madison River Capital manages over $1 billion in assets, according to regulatory filings. The firm currently employs about a dozen staff and is planning to expand its investment team further.

Source: CrainCurrency, 20.05.2025