Audax Group has held a final close of Audax Mezzanine Fund IV at the hard cap of $1.2 billion. The new fund was oversubscribed and exceeded its target of $1 billion. Audax’s earlier mezzanine fund, appropriately named Audax Mezzanine Fund III, closed with $1 billion of capital commitments in 2011. The firm’s second mezzanine fund closed in 2005 at $700 million.
Fund IV raised its capital from the usual mix of institutional investors – public and corporate pension funds, insurance companies, endowments and foundations, and high net worth families – in addition to a significant commitment from Audax’ senior professionals.
As with earlier Audax mezzanine funds, the firm will invest the proceeds in junior debt securities and equity co-investments, with a focus on direct lending to US middle market companies as part of private equity-sponsored buyouts, recapitalizations, financings, and acquisitions.
“We appreciate the support from our existing and new investors and thank them for their commitment to Audax,” said Co-Chief Executive Officer, Geoffrey Rehnert. “The significant demand for our fourth mezzanine fund underscores the capability of our team and our differentiated strategy, as well as our investors’ confidence in our consistent track record of delivering attractive returns.”
Audax operates through two groups; Private Debt and Private Equity. Audax Mezzanine is part of Audax Private Debt and is based in New York. Audax Private Equity operates out of New York, Boston and Menlo Park.
“We are pleased to once again receive broad investor support in Fund IV,” said Kevin Magid, Managing Director and the head of Audax’ Private Debt business. “We look forward to continuing to provide financing to, and partner with, our private equity clients. We have completed 90 mezzanine debt investments with 50 different private equity firms. The capital base of Fund IV will allow us to further enhance our capabilities.”
Audax makes investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 (www.audaxgroup.com).
© 2016 Private Equity Professional • 7-13-16
