Harbert Management Corporation has held a final closing of its third mezzanine debt fund, Harbert Mezzanine Partners III, LP (HMP III) at $165 million. Commitments to the new fund came from existing investors and new institutional investors including public and private pensions, fund of funds and family offices.
The new fund is led by John Harrison, senior managing director. Mr. Harrison has led each of Harbert’s earlier mezzanine funds including Harbinger Mezzanine Partners, LP; Harbert Mezzanine Partners II, LP; and Harbert Mezzanine Partners II SBIC, LP.
HMP III is the first non-SBIC mezzanine fund for the firm and the unleveraged structure will allow for increased flexibility in terms of both pricing structure and breadth of investment opportunities. HMP III’s strategy is to invest $3 million to $15 million in small- to medium-size businesses seeking funding for organic growth, acquisitions, recapitalizations and management buyouts.
“We are excited to announce the final close of the HMP III,” said Mr. Harrison. “With ten investments already completed and a robust pipeline, the fund is off to a good start.” The ten portfolio companies are active in credit card transaction processing, IT services, clinical laboratory services, commercial and healthcare staffing, fueling services, truck accessories, restaurants, turbine and generator maintenance, and social media.
Harbert launched its first mezzanine fund in 2000 and over the past 15 years has invested approximately $600 million in 96 companies. “We would like to thank all of our advisors, co-investors, deal sources and portfolio companies for a successful first 15 years,” concluded Mr. Harrison. “We look forward to the strengthened relationships with our investors and continued success for many years to come.”
Harbert Management Corporation has approximately $4.2 billion in assets under management. Limited partners in the various HMC funds include foundations and endowments, funds of funds, pension funds, financial institutions, insurance companies, family offices and high net worth individuals. The firm was founded in 1993 and is based in Birmingham, AL (www.harbert.net).
© 2015 PEPD • Private Equity’s Leading News Magazine • 4-29-15
