Alaska slates $50m for mezzanine fund

The Alaska Permanent Fund is investing in the Audax Mezzanine Fund IV, which is targeting $1 billion, with a $1.25 billion hard cap.  

The Alaska Permanent Fund Corporation approved a $50 million commitment to the Audax Mezzanine Fund IV at a board meeting this week (20 May). The $55 billion sovereign wealth fund has a 2.5 percent allocation to private credit strategies and has invested in Audax’s mezzanine funds in the past.

The system also invested in a $750 million separate account with Apollo Global Management in May last year, to be invested across a range of alternative credit strategies, as PDI reported at the time. Its other credit investments have been with Oaktree Capital Management and Crestline Investors.

The Audax fund is raising $1 billion, with a $1.25 billion hard cap, according to Dow Jones. The vehicle also received a $30 million commitment from the Kentucky Teachers Retirement System in December.

The New York-based mezzanine group at Audax invests in junior debt securities of private middle-market companies with historically stable cash flow, consistent revenue growth and strong management teams, according to the firm’s website. Its mezzanine loan sizes range from $15 million to $100 million.

The firm also invests in senior debt and unitranche facilities through a separate senior debt group. The facilities usually back leveraged buyouts, as well as recapitalization and acquisition financing with private equity sponsors. The previous Audax Mezzanine Fund III also raised $1 billion in 2011.