The Audax Group has officially begun fundraising its third mezzanine vehicle, Audax Mezzanine Fund III, LP, targeting $750 million, according to a Form D filing with the Securities and Exchange Commission. The fund, if it reaches its goal, will be slightly larger than its $700 million predecessor, raised in 2006.

The New York-based fund, affiliated with Boston-based private equity firm Audax Group, is headed by managing directors Kevin Magid, Peter Gummeson and Rahman Vahabzadeh.

While the vehicle largely targets subordinated mezzanine debt, the firm will also invest in second lien or junior secured debt, preferred stock and common equity, and commits between $10 million and $50 million per investment, according to the firm's website.

A typical investment for the fund will come alongside a buyout or a recapitalization. Audax Mezzanine, for instance, backed Brockway Moran & Partners' acquisition of GED Integrated Solutions and helped fund a Brazos Private Equity Partners-led recapitalization of Healthcare Solutions.

Unlike many captive mezzanine funds, Audax does not invest alongside the firm's primary private equity vehicle.

A call to the firm was not immediately returned by press time.

The mezzanine space has managed to attract institutional capital in recent months, as Falcon Investment Advisors and Maranon Capital have closed funds recently. Others in the market include, Kayne Anderson, Golub Capital and Capital Point Markets, among others.

 

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