New York-focused alternative lender Audax Group announced on Monday (17 October) that it held a $1.6 billion final close on its Audax Senior Loan Fund III (SLF III), surpassing the vehicle’s target just a few months after raising $1.2 billion for its recent mezzanine fund.
The firm announced it raised $500 million in equity for the senior loan fund, which will be supplemented by $1.1 billion credit facility. Audax surpassed its $400 million goal in equity commitments and hit its hard-cap.
SLF III will stay the course with the firm’s senior debt investment strategy, investing in first lien senior secured loans in sponsored transactions. Private Debt Investor exclusively reported Audax began seeking its third pool of capital for senior capital injections in February.
According to the announcement, the firm’s investors typically include public and corporate pension plans, insurance companies and foundations, to name a few. The profile of SLF III’s specific investors were not specified.
The closing of the firm’s third vehicle comes just months after Audax closed its Audax Mezzanine Fund IV at $1.2 billion, which also passed its $1 billion target. Investors in the mezzanine fund included a $150 million contribution from Florida State Board of Administration, a $100 million pledge from the Minnesota State Board of Investment, and a $50 million commitment from the Alaska Permanent Fund.
“Combined, these two vehicles added over $2.8 billion for Audax Private Debt to invest in senior and junior debt of middle market companies,” Kevin Magid, a managing director at the firm, said in the Monday statement.
Audax has been active on the trail for the last 12 months. The firm also closed a private equity investment fund for almost $2.3 billion in November 2015, as PDI sister publication Private Equity International reported at the time. The PE vehicle included a $125 million commitment from the Virginia Retirement System and a $20 billion investment from the Montana Board of Investments.
According to the mid-market lender’s website, it has financed 400 transactions totaling more than $6 billion.