Seattle-based mezzanine debt provider Lakeside Capital Management has closed its second mid-market focused mezzanine capital investment fund, GMB Mezzanine Capital II, with commitments of $240m.
Lakeside exceeded its targeted fund size with a mix of investors, including family offices, regional and national banks and large institutional investors.
“While the environment throughout was challenging, the appeal of the mezzanine investment class and the opportunities offered by our middle-market focus and well-developed sponsor relationships resonated with many investors. We are grateful for their confidence and support,” said Mike McHugh, a managing principal at the firm.
GMB Mezzanine Capital II invests between $3m and $18m in subordinated debt and non-control equity in lower mid-market companies with enterprise values under $100m.
The fund assists private equity and independent sponsors in buy-out transactions, their portfolio companies’ growth capital and acquisition needs, and recapitalisations, across a broad range of US-based industries, it said.
The vehicle has been licensed by the US Small Business Administration (SBA) as a Small Business Investment Company (SBIC) and is the second SBIC formed and managed by the firm.
GMB Mezzanine Capital II has so far invested $42m in seven portfolio companies. The fund’s predecessor invested a total of $207m in 29 portfolio companies between 2005 and 2010.
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