Merit Capital Partners has held an above-target close of its sixth fund at $536 million.
Fund VI exceeded Merit’s target of $500 million and generated support from both existing limited partners from prior funds, as well as several new investors. Merit received commitments from a variety of limited partners, including insurance companies, pension funds, university endowments, fund-of-funds, and family offices. Merit’s earlier fund was raised in 2010 with $612 million of capital.
Merit’s history dates back to 1993 when it was founded through a partnership with William Blair & Company and was initially known as William Blair Mezzanine Capital Partners. In 2005, members of William Blair Mezzanine Capital Partners formed an independent entity, Merit Capital Partners, in conjunction with the raising of Merit Mezzanine Fund IV LP, a $455 million fund. Merit Capital Partners remained responsible for managing the first three William Blair Mezzanine funds. In all, with the closing of Fund VI, Merit has now raised over $2.2 billion of capital since 1993.
Merit invests mezzanine and equity capital of $15 million to $60 million in companies with at least $5 million of EBITDA that are active in the manufacturing, distribution and services industries. The firm focuses on recapitalizations and buyout transactions, primarily in partnership with family-owned companies, existing owner-managers, and with independent sponsors.
M2O Private Fund Advisors (www.m2ollc.com) was the placement agent for Fund VI. VCP Advisors (www.vcpadvisors.com) assisted with fundraising efforts in Europe. Legal services were provided by Kirkland & Ellis.
Merit is led by its founding partners Terrance Ship and Marc Walfish and is based in Chicago (www.meritcapital.com).
© 2018 Private Equity Professional | April 3, 2018