US-based Seacoast Capital Managers has closed its third mezzanine vehicle on $150m, 50 per cent larger than the two other mezz funds it has raised over the last 19 years.
SeaCoast Capital Partners III’s status as a Small Business Investment Company means it will have access to $100m of debenture funding from the US Government, via the Small Business Administration.
The firm will continue its strategy of investing in lower mid-market businesses, and has already backed two companies to the tune of $15m through the new fund.
They are fire alarm business Mountain Alarm and automotive port processing company FAPS.
Seacoast’s last mezzanine vehicle was closed on $100m in 2002, while its debut hit a similar close in 1994.
The firm has also hired Patrick Gengoux as an associate in its San Francisco office hot on the heels of him graduating from his MBA at UCLA.
Gengoux will be responsible for new deal evaluation, analysis, financial modelling, due-diligence and structuring as well as monitoring portfolio companies.
He previously worked for special situations private equity firm Signature Capital Advisors.
Seacoast typically provides between $3m and $12m of debt and equity capital for acquisitions, growth, shareholder buyout, MBOs and leveraged recapitalisations to provide shareholder liquidity.
The firm generally targets companies with minimum revenues of $10m and EBITDA of $2m.
It has invested more than $245m in across over 20 states since raising its first fund in 1994.
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