Comvest raises fourth debt fund to support mid-market M&A

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Comvest Credit Partners has raised its fourth debt fund, Comvest Capital IV LP, at $836 million. The firm is the direct lending arm of middle market private equity firm Comvest Partners.

Comvest Credit provides mezzanine capital, senior secured and second lien loans, unitranche debt to middle market companies to help them support their M&A efforts. The firm mostly concentrates on the healthcare, technology, logistics, financial services, industrials and consumer sectors. Comvest Credit lends to deal sizes of upt to $200 million for companies that have at least $15 million in revenue.

"With the increased fund size, we believe we are well positioned to provide middle-market companies with a one-stop financing solution, as well as greater flexibility on structure and pricing," says Comvest managing partner Robert O'Sullivan. "This approach, combined with the resources of Comvest Partners, enables Comvest Credit Partners to be a stable, value added, long-term partner for our borrowers.” Kirkland & Ellis advised Comvest Credit.

Comvest Partners is a West Palm Beach, Florida-based middle market investment firm that has $2.8 billion under management. The firm invests between $35 million to $125 million in businesses that have up to $1 billion in revenue. Comvest Partners raised its fifth private equity fund in 2015.

The middle market has been seeing a rising popularity in debt funds. Churchill Asset Management LLC has raised its second collateralized loan obligation (CLO) fund; Glendon Capital closed a distressed fund; and Yukon Partners has raised a third mezzanine fund, called Yukon Capital Partners III LP, with approximately $558.7 million in capital commitments.

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