Northstar Closes $530 Million Across Parallel Funds

Northstar Capital has held a final close of Northstar Mezzanine Partners VIII LP and Northstar Mezzanine Partners SBIC II LP with a combined $530 million of capital. This fundraise follows the prior parallel fundraise that closed in January 2021 with $500 million in combined commitments.

Northstar is an active provider of mezzanine debt and equity co-investments to sponsored lower middle market companies with at least $3 million of EBITDA. Sectors of interest include healthcare, industrials, consumer, business services, food and agriculture, outsourcing, and distribution. Northstar can make unitranche investments of up to $50 million; subordinated debt investments of $5 million to $30 million; and equity co-investments of up to $15 million.

To date, Northstar has completed 18 investments across the two new funds. Earlier this month, Northstar provided debt and made an equity co-investment to back the add-on acquisition of Tennessee-based Total Garage Store by US Dock & Door, a portfolio company of Soundcore Capital Partners.

Georgia-headquartered US Dock & Door provides installation, maintenance, and repair services for commercial loading dock equipment, entry systems, and residential garage doors. US Dock & Door was formed by Soundcore in September 2023 as a platform in the overhead door and dock equipment services sector and has now made five acquisitions for the platform and serves customers located in the Southeast and Northeast United States.

“We’re incredibly grateful for the continued support and confidence from our investors,” said Christopher Kocourek, the managing partner at Northstar. “This fundraise reinforces the strength of our team, our strategy, and our commitment to delivering consistent results through market cycles. Our parallel fund structure enables us to deliver creative capital solutions for sponsor partners, and we’re excited by the momentum we’re already seeing in the market.”

Northstar was founded in 1993 and is headquartered in Minneapolis.