THL Credit Advisors LLC has raised a third debt fund. Valued at $511, the THL Credit Direct Lending Fund III focuses on lower middle-market companies in the financial services, healthcare, media and consumer sectors.

"The capital raise enviroment is strong. There's a huge demand for yields," THL Credit co-CEO Chris Flynn tells Mergers & Acquisitions. The firm's second fund raised $187 million in 2013. THL Credit can make loan sizes of up to $50 million in busiesses that have between $10 million to $50 million in Ebitda. "There's a lot of capital available from a debt and equity perspective," adds Flynn.

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