Audax hits finish line for mezz fund on $1.2bn

The US mezzanine manager gathered $200m more than its target for its fourth junior debt vehicle.

Audax Group has completed fundraising for its Audax Mezzanine Fund IV at $1.2 billion, passing its $1.0 billion target. The firm has been fundraising for this fund since the spring of last year. Audax’s last junior debt vehicle, a 2011 vintage, closed on $1.0 billion, also exceeding its $750 million target.

The capital in the fourth fund came from a combination of institutional and high-net-investors, Audax said in a statement. Public pension LPs in fund IV include the Minnesota State Board of Investments and the Alaska Permanent Fund, according to PDI data. The firm raises capital from a mix of institutional investors, including public and corporate pension funds, insurance companies, endowments, foundations and wealthy families. Audax’s senior management also makes significant commitments into the firm’s funds.

Audax’s mezzanine strategy primarily targets sponsor-backed US mid-market companies in need of junior debt capital for buyouts, recapitalizations, refininacings and acquisitions. Audax directly sources these loans and sometimes grants equity co-investments to its borrowers as well.

“We look forward to continuing to provide financing to, and partner with, our private equity clients. We have completed 90 mezzanine debt investments with 50 different private equity firms. The capital base of Fund IV will allow us to further enhance our capabilities,” Kevin Magid, managing director and head of Audax’ private debt business, said in a statement.

Audax also handles private equity and senior debt strategies. The firm is currently in the market with a $1.3 billion senior loan fund as well. Since its founding in 1999, Audax has raised almost $15 billion of capital and currently manages about $10 billion.

Audax’s mezzanine business is based in New York. The firm also has offices in Boston and Menlo Park.