Breakaway Capital hits hard-cap on second fund

The investment firm saw its existing investors who put money into Breakaway’s debut fund increase their commitments for the second fund.

Breakaway Capital has closed its second direct-lending fund after hitting its upper limit, juiced by commitments from individuals and family offices.

The Los Angeles-based mid-market lender announced the investment vehicle, Breakaway Capital Partners Fund II, hit the $100 million hard-cap, surpassing the initial $75 million fundraising goal. The second fund is twice the size of its debut fund, which made its initial investment in January 2015.

“Our strong dealflow and the attractive companies we have successfully financed to date validates the investment thesis we had when we formed Breakaway Capital in 2014,” founding partner Mike Connolly said in the Tuesday announcement. 

Warren Woo, also a founder of the firm, said that existing investors increased their existing positions by 50 percent and new investors showed an “overwhelming level of interest”. Both factors allowed the company to wrap up its fundraising in less than two months, he said.

The fund closing comes on the heels of a loan to Galaxy Gaming, its seventh investment. On 7 September, Breakaway announced the closing of a $10.5 million senior secured facility with the Las Vegas-based company, which makes, markets and distributes casino table games.

Breakaway Capital lends to companies with up to $10 million in EBITDA. It invests up and down the capital structure, including senior debt and mezzanine loans, in both sponsored and non-sponsored deals.