Audax Private Debt, a New York-based mid-market debt capital provider, has closed on Audax Direct Lending Solutions Fund II with $3 billion of capital commitments. This means that not only did it surpass its target of $2.25 billion, but hit its hard-cap.
This final closing puts DLS Fund II at nearly twice the size of its predecessor fund, Direct Lending Solutions, which closed in 2018 with $1.65 billion. Both funds have a senior debt/North America corporate strategy. DLS Fund I is now in a reinvestment period, Audax said in a statement.
Including targeted leverage, the DLS Fund II closing provides Audax with $4.5 billion of total investable capital. Together, the two DLS Funds have total investable capital for unitranche financing of more than $7 billion.
DLS Fund II has a wide range of investors, both in terms of geography and institutional type. Its investors are from the US, Canada, Europe, Asia-Pacific, the Middle East and Latin America. They include pension funds, SWFs, insurers, foundations, endowments and family offices. According to PDI data, its LPs include the Alaska Permanent Fund and the Virginia Retirement System. They have invested $75 million and $250 million, respectively.
Audax Private Debt has more than $20 billion of AUM and more than 50 investment pros. Its co-heads of origination, Rahman Vahabzadeh and Steve Ruby, said in a statement: “The capital raised in DLS II will allow us to provide unitranche and stretch senior financing of up to $200 million per transaction. Historically, it’s in these types of environments — when capital has become constrained — that our value proposition as a sophisticated and thoughtful financing partner distinguishes our approach in direct lending.”