Madison Capital Funding, the middle market lending subsidiary of New York Life Insurance Company, has closed its seventh fund, MCF CLO VII LLC, a $302 million collateralized loan obligation (CLO) vehicle. The new fund will have a 4-year investment period and Madison Capital will serve as collateral manager.
Madison Capital is one of the more active lenders that support middle market private equity sponsors with cash-flow based lending facilities for acquisitions, recapitalizations, MBOs and LBOs. The firm will also provide equity co-investment capital of up to $2 million. Sectors of interest include manufacturing, distribution, services, consumer products, healthcare, insurance & financial services, aerospace & defense, and technology services. Target companies typically have at least $3.5 million of EBITDA.
“This transaction represents our seventh middle market CLO to date and our third CLO transaction this year, with our 2017 CLO issuance approaching $1 billion,” said Managing Director & Head of Investment Management, Ashish Shah. “Investors place great value in Madison Capital’s strong loan originations capabilities, sophisticated credit management platform, and uninterrupted capital support from New York Life.”
Last month, Madison Capital provided financing to Quala, a provider of bulk transportation container cleaning and a portfolio company of Advent International, to support its August 2017 acquisition of Alpha Technical Services, an industrial and environmental services company owned by Rock Hill Capital Group.
Since its founding in 2001, Madison Capital has invested over $26.6 billion in net funded commitments in over 1,000 transactions and the firm manages over $8 billion in assets for New York Life and other third party clients. Madison Capital is based in Chicago (www.mcfllc.com).
© 2017 Private Equity Professional | September 8, 2017
