Audax Closes Mid-Market Senior Loan Fund, Following Mezzanine Capital Raise

Carlyle, Monroe and NXT also raised debt funds

Audax Group has a raised a senior loan fund called Audax Senior Loan Fund III. The fundraise shows investors’ confidence in middle market debt.

SLF III is valued at $1.6 billion. The fund has about $500 million in committed equity along with a $1.1 billion credit facility. SLF III has raised capital from pension funds, insurance companies, endowments and high net worth families.

“The continued demand for our senior debt products underscores the capability of our team, our differentiated approach and our investors’ confidence,” say Audax co-CEOs Geoffrey Rehnert and Marc Wolpow. Audax recently raised a $1.2 billion mezzanine fund.

Audax Senior Debt seeks investments in companies that have up to $50 million in Ebitda and at least $50 million in revenue, and will make loan sizes between $50 million and $300 million. The fund targets the business services, consumer, chemicals, healthcare, energy and industrials sectors.

Audax Senior Debt is based in New York and is part of Audax Private Debt, which operates separately from Audax Private Equity. The PE group is based in Boston and won Mergers & Acquisitions’ 2015 M&A Mid-Market Award for Private Equity Firm of the Year.  In a separate announcement, Audax Private Equity portfolio company Active Day acquired acquired adult day car services provider Lowell Elder Care.

Private equity firms have been raising loan funds, reinforcing investors’ interest in the private debt landscape, which is not yet as crowded as it is among private equity firms. NXT Capital LLC closed its fourth debt fund at $900 million; the Carlyle Group LP (Nasdaq: CG) raised a CLO fund; and Monroe Capital closed a $800 million credit fund.


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