Audax Group has raised its fourth mezzanine fund, Audax Mezzanine Fund IV. The fund will invest in junior debt securities, particularly private equity-backed middle market companies that are involved in M&A and recapitalizations.
Audax Mezzanine raised capital from pension funds, insurance companies, endowments, high net worth families, and received a commitment from Audax’s senior executives. The new fund is valued at $1.2 billion.
According to Kevin Magid, the head of Audax’s private debt group, the firm has completed 90 mezzanine debt investments with 50 different private equity firms. Audax Mezzanine is based in New York and is part of Audax Private Debt, which operates separately from Audax Private Equity. Both Audax Mezzanine and Audax Private Euqity are divisions of the Audax Group.
Audax Mezzanine invests up to $100 million in mezzanine debt in middle market companies that have between $10 million and $40 million in Ebitda across a number of industries including: aerospace and defense, consumer, health care, logistics, manufacturing and software. Some of the firm’s investments include Centerplate, Shoes For Crews and Worldwide Express. CCMP Capital Advisors LLC acquired Shoes For Crews in 2015.
Audax Private Equity has been active recently. The firm acquired promotional products distributor Halo Branded Solutions; ICP, which is backed by the PE firm, purchased adhesives maker Fomo Products Inc.; and Audax also backed physiotherapy provider Lifemark Health. Audax won Mergers & Acquisitions’ 2015 Mid-Market Award for Private Equity Firm of the Year.