Mike Pompeo's Niobrara Raises US$1.5B to Buy Firms Riding AI and Chip Reshoring

Niobrara Capital Partners, a New York-based private equity firm whose partners include former U.S. Secretary of State Mike Pompeo, closed its first fund with more than US$1.5 billion in committed capital, the firm announced on October 5, 2026. The main vehicle, Niobrara Founders Fund L.P., and its parallel funds raised more than US$1.1 billion at final close, 50% above target. Co-investment vehicles make up the rest. Managing Partner Chip Schorr, who spent years leading technology deals at One Equity Partners, founded the firm in 2024 with Pompeo and former OEP operating partner Todd Bradley. The firm did not name its investors, describing them only as leading institutional investors. Davis Polk & Wardwell served as legal counsel.

Niobrara buys majority or minority stakes in midsize business-to-business technology and tech-enabled services companies, generally those earning US$15 million to US$100 million in annual EBITDA (a measure of operating profit) in North America and Europe. Its thesis is to back companies that benefit directly or indirectly from major technology shifts and turn them into leaders in their niche. Its first deal was a US$175 million control investment in Polar Semiconductor, a Minnesota chip manufacturer, in 2024. The firm has now completed four platform investments, Pompeo said in the announcement.

Market Context

The close stands out in a tough market for new managers. Global private equity fundraising passed US$260 billion in the first half of 2026, according to PitchBook data cited by the Financial Times, but only about 310 funds closed, putting the industry on track for its lowest annual fund count in more than a decade. Funds seeking more than US$1 billion took over 80% of all capital raised, as investors favored established names such as KKR, EQT and Advent.

Niobrara's pitch combines Schorr's deal record (more than 30 platform investments and 100 add-on acquisitions at OEP) with Pompeo's national security profile. Axios reported in June that the firm had crossed US$1 billion and planned to focus on AI and on bringing manufacturing, especially semiconductors, back to the United States, areas that benefit from the CHIPS Act. The firm also received a strategic investment from Wafra's Capital Constellation platform earlier this year.

The Number

50% How far Niobrara's main fund beat its target, in a year when most capital went to managers with decades of track record.

"In a challenging fundraising market, we significantly exceeded our Fund target." Chip Schorr, Managing Partner, Niobrara Capital Partners

Regional Relevance

For the United States, Niobrara is a clear example of how geopolitics now shapes private equity. Reshoring chip production and protecting tech supply chains are federal priorities, and a firm led by a former Secretary of State and CIA director is positioned to invest where industrial policy and national security meet. Its Polar Semiconductor deal, which helped turn the Minnesota fab into a U.S.-owned merchant foundry, shows the playbook in practice.

For the U.S. midmarket, the fund adds a well-capitalized buyer for companies too small for megafunds but large enough to need institutional capital. Sellers in software, IT services and chip supply chains gain another bidder, and the size of the raise signals that investors see value in policy-driven technology themes, not only in AI software.

The Other Side

Who are the investors? Niobrara did not disclose a single limited partner. For a firm whose pitch leans on national security and reshoring, the source of its capital matters, especially if any of it comes from sovereign or foreign investors. Without names, readers cannot judge potential conflicts.

Is the political profile an asset or a risk? Pompeo's network can open doors with regulators and government-linked buyers. It can also draw scrutiny over access and influence, and political winds can shift with each administration and each change in industrial policy.

How big is the track record behind the fund? The figures on Schorr's past deals come from his time at OEP, not from Niobrara. The new firm has four platform investments and no realized exits yet, so its own returns remain unproven. Also note that the headline US$1.5 billion includes co-investment money; the core fund is about US$1.1 billion.

Sources & Transparency

• Niobrara Capital Partners Closes Inaugural Founders Fund and Related Vehicles With Over $1.5 Billion in Committed Capital
• Niobrara Capital closes inaugural fund with more than $1.5bn in commitments
• Niobrara Capital beats debut fund target by 50% with $1.1bn close
• Davis Polk-Led Niobrara Clinches $1.5B Inaugural Fund
• Scoop: Mike Pompeo and Chip Schorr's Niobrara lands over $1B