Northstar Closes on New $500 Million

Northstar Capital has closed Northstar Mezzanine Partners VII LP  and Northstar Mezzanine Partners SBIC LP with combined capital commitments of nearly $500 million.

Northstar’s SBIC fund is its first fund to be licensed as a Small Business Investment Company by the U.S. Small Business Administration.

Northstar invests from $5 million to $30 million of subordinated debt and/or up to $15 million of equity as a co-investment in sponsored transactions of North American-based companies with EBITDA of at least $3 million. The firm’s transaction types include buyouts, recapitalizations, add-on acquisitions, and refinancings.

“The entire Northstar team is grateful for the continued trust and support that our investors have placed in us across three decades,” said Douglas Mark, a managing Partner at Northstar. “The Northstar team’s collective experience, dedication to a single, disciplined strategy and performance results resonates within the investor community.”

Northstar has made nine platform investments through its two new funds. Most recently, Northstar invested in Fresche Solutions, a Montreal-based provider of IT applications and systems and a portfolio company of American Pacific Group (December 2020); and Vectair Systems, a Memphis-based provider of sanitization and hygiene dispensers used in the janitorial and sanitation sectors and a portfolio company of Arcspring and Oxbow Industries (December 2020).

Other Fund VII investments include Molded Dimensions, a portfolio company of Shoreview Industries (August 2020); Yale Cordage, a portfolio company of River Associates (July 2020); Consolidated Label, a portfolio company of Tenex Capital (July 2020); PKWARE, a portfolio company of Thompson Street Capital Partners (May 2020); Advanced Material Processing, a portfolio company of May River Capital (August 2019); Presco, a portfolio company of River Associates (February 2019); and Sprinturf, an unsponsored transaction (November 2018).

“Our parallel fund strategy is off to a great start, as 2020 presented us with many opportunities to support our sponsor relationships with patient capital and creative financing solutions,” said Christopher Kocourek, a managing partner at Northstar.

Northstar was founded in 1993 and is headquartered in Minneapolis.

© 2021 Private Equity Professional | January 26, 2021

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