Brookside Mezzanine Partners has beaten its target for its third fund by holding a $250m final close for the vehicle.
The new fund will continue the firm’s previous investment strategy of providing subordinated debt, unitranche and minority equity capital to support leverage buyouts, acquisitions, recaps and growth initiatives for SME businesses throughout the US.
Brookside founder and co-manager David Buttolph said, “We are very pleased with the strong support our existing investor base and new limited partners have shown Fund III.
“With this latest fund, Brookside Mezzanine Partners now has in excess of $500m in assets under management.
“We look forward to continuing our strategy of investing capital in the lower-middle market where we believe we can continue to achieve the strongest returns for our limited partners.”
Brookside was thought to be hoping to raise just $100m for its third fund after it filed a document with the US securities regulator with that target.
But the firm said the vehicle was actually aiming for $225m.
The firm typically invests up to $20m per transaction while targeting companies in the manufacturing, business services, distribution, restaurant/retail and healthcare sectors.
It is interested in companies with an EBITDA of at least $3m with EBITDA margins in excess of ten per cent.
Brookside’s current portfolio includes companies in the medical/health, manufacturing, business services, consumer and transportation space such as contract manufacturer 3D Machining, engineering, design and manufacturing company Aerospace Holdings and retailer Boot Bam.
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