Audax Private Debt has closed Audax Mezzanine Fund V LP with just over $1.8 billion in capital commitments.
According to Audax, the new fund was significantly oversubscribed and closed above its target of $1.5 billion. Limited partners in Fund V include both returning and new institutional investors in the U.S., Europe, Asia‐Pacific, and the Middle East.
“We greatly appreciate the strong support we received from both long-time and new limited partners, particularly in light of the challenging fundraising environment this past year,” said Kevin Magid, the president of Audax Private Debt. “As one of the longest-tenured providers of mezzanine capital to North American middle-market companies, we are pleased that this fundraise will allow us to remain a go-to source of financing for private equity-owned businesses. We look forward to using the capital raised to continue supporting our clients, as we have over the last 21 years.”
Audax Private Debt makes first-lien, stretch senior, unitranche, second lien, junior debt and equity co-investments in North American-based private equity sponsored middle-market companies.
“The successful closing of our new fund allows us to continue our strategy of meeting the unique financing needs of middle-market sponsors across the country,” said Rahman Vahabzadeh and Steve Ruby, managing directors at Audax Private Debt, in a released statement. “We believe Audax Private Debt remains ideally positioned to be a long-term value-added partner to our private equity clients.”
Audax Private Debt was founded in 2000 and has invested $23 billion of capital in more than 860 companies backed by over 240 private equity sponsors. The group’s earlier fund closed in 2016 at its hard cap of $1.2 billion. Looking further back, Fund III closed in 2011 with $1 billion of capital and Fund II closed in 2005 with $700 million of capital. Today, the New York-based lender has more than 40 investment professionals and 80 total employees.
Audax Private Debt is part of Audax Group, an investor in middle-market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. Sectors of interest include business and consumer services; energy; healthcare; technology, media and telecom; and industrials including chemicals, infrastructure, and building materials. Audax, with offices in Boston, New York, and San Francisco, is currently investing out of its $3.5 billion, sixth private equity fund.
© 2021 Private Equity Professional | May 11, 2021