Private equity firm Timber Bay Partners has announced the final close of its third flagship fund, Timber Bay Fund III, with $281 million in total capital commitments. 

The fund received commitments from new and existing institutional investors, including foundations, endowments, family offices and health systems, the company stated in a release.

"Our team has been investing in this space since 2008, and as the opportunity set continues to broaden, we remain committed to a disciplined, highly selective investment approach," said Founder and Managing Partner Joe Woods. 

Timber Bay believes a "significant opportunity" exists in the lower-middle market. The firm believes this segment of the market remains an area where active governance, structured solutions, and meticulous underwriting expertise can drive true alpha generation, the press release stated.

Timber Bay has approximately $1.1 billion in assets under management. The Cincinnati-based private equity firm is dedicated to GP-led secondaries in the lower-middle market.

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