Audax Credit raises over $850m across direct lending strategy

Its vehicle will be used to invest in mid-market companies across North America through senior secured first- and second-lien loans.

The Audax Group has held another close for its most recent direct lending fund, according to Securities and Exchange Commission filings.

The Boston-based firm’s Audax Direct Lending Solutions Fund closed on $561.75 million and $292.6 million respectively across two separate fund sleeves. The vehicle launched in October 2017 and currently has at least $854.53 million in committed capital.

The firm declined to comment.

The vehicle will invest in mid-market companies across the US and Canada in the form of unitranche and stretch senior secured first- and second-lien loans, according to additional SEC documents. It will also use 5-10 percent of the capital for equity investments into the companies it intends to lend to.

The fund has received investment from the Pennsylvania State Employees Retirement System, which committed $100 million in July. Additionally, the Alaska Permanent Fund Corporation invested $125 million and the Virginia Retirement System committed $250 million in late 2017.

Audax is an investment firm founded in 1999 that currently has over $13 billion of assets under management. It also invests in mezzanine debt and manages a business development company, Audax Credit BDC.