Avante Mezzanine Partners has held an above target final closing of Avante Mezzanine Partners SBIC II, LP (Fund II) with $250 million of capital commitments, including leverage from the Small Business Administration. Avante will pursue the same investment strategy for Fund II as it did for its inaugural fund, providing debt and junior capital to lower middle market businesses with $3 million to $15 million in EBITDA.
Avante was able to close up Fund II within 6 months of starting fundraising and the fund was oversubscribed by 33%. Limited partners in Fund II include new and existing investors including pension funds, family offices, banks, and other institutional investors.
“My partners and I are grateful for the overwhelming support we received from our existing investors and are excited to welcome many new limited partners to our fund,” said Jeri Harman, Managing Partner & CEO of Avante. “We continue to believe that the lower middle market presents an attractive opportunity to invest junior capital and generate superior risk-adjusted returns for our investors.”
Avante, with offices in Los Angeles and Boston, provides unitranche/one-stop debt, mezzanine, and minority equity investments of $5 million to $25 million to sponsored and non-sponsored companies with EBITDAs from $3 million to $15 million. Sectors of interest include aerospace and defense; business services; consumer products; distribution; education; healthcare and life sciences; industrial manufacturing; security products and services; software and IT services; and specialty chemicals and coatings (www.avantemezzanine.com).
“We are thrilled and humbled to have the support of such a diverse group of institutional and family office investors who enabled us to raise our fund above target,” said Ivelisse Simon, the Partner at Avante who led the fundraising effort. “With Fund II officially closed, our plan is to continue to leverage our strong market reputation and longstanding relationships, creative and responsive approach to the market, and disciplined investment selection process to build an attractive portfolio of debt and equity investments.”
Avante’s first fund closed above target in January 2012 with capital commitments of $218 million.
© 2015 PEPD • Private Equity’s Leading News Magazine • 9-10-15
