Abry Partners is in the market for its latest vehicle targeting mezzanine debt and preferred equity, a launch that coincidentally comes just as several large funds targeting investments lower in the capital stack have recently closed.
The Boston-based alternative lender in a regulatory filing made Friday with the US Securities and Exchange Commission disclosed the launch of the Abry Senior Equity V fund, which has a set target of $1.05 billion. That goal is an increase from the $950 million Senior Equity IV fund Abry raised for the 2012 vehicle.
Among the largest commitments made to the previous mezzanine fund, are commitments from the New York State Teachers’ Retirement System ($100 million); Florida State Board of Administration ($60 million); and the San Francisco Employees’ Retirement System ($30 million), according to Private Debt Investor data. HarbourVest Partners, a fund of funds manager, also put $20 million into the vehicle from its HarbourVest Partners IX – Credit Opportunities Fund.
Senior Equity IV invests $20 million to $90 million in businesses that are sponsored by Abry’s private equity funds or partially owned by other companies, according to the firm’s website. It’s latest private equity fund, Abry Partners VIII, raised $1.9 billion and launched in 2014, according to Private Equity International data. The New York teachers’ pension fund also committed $100 million to this fund.
The mezzanine fundraising market has been active this year, with GSO Capital Opportunities Fund III and Carlyle Energy Mezzanine Opportunities Fund II recently closing. GSO announced its fund wrap-up on 31 October after the vehicle hit its $6.5 billion hard-cap, while Carlyle’s fund closed the very next day at $2.8 billion. Both surpassed their respective $6 billion and $2.5 billion targets.
HPS Investment Partners is also seeking capital for investments for its Mezzanine Partners III vehicle. So far it has raised $4.62 billion towards its $5.5 billion goal, according to PDI data. The New York-based investment firm has a second mezzanine fund in the market, its European Asset Value Fund seeking €1.5 billion for investments in western Europe.
Crescent Capital Group’s Crescent Mezzanine Partners Fund VII is also in the market, and has garnered $2.5 billion in commitments, putting it close to its $3 billion goal.