Brightwood Capital Advisors has raised a total of $1.2 billion for its Brigthwood Capital Fund IV, filings with the US Securities and Exchange Commission showed.
The fund, which launched in September 2016, invests in both senior secured and mezzanine loans to lower mid-market firms in the US to facilitate recapitalisations, acquisitions and buyouts, according to a document from the New York State Common Retirement Fund.
CRF made a commitment of $300 million to Brightwood’s latest vehicle, while the Laborers’ and Retirement Board Employees' Annuity and Benefit Fund of Chicago also made a $10 million commitment to Fund IV, a pension document showed. Brightwood’s funds generally charge a 20 percent carried interest and set an 8 percent hurdle rate, according to regulatory filings.
The amount raised for Fund IV surpassed the total raised for the preceding 2013-vintage Fund III, which closed on $1 billion, well over its $500 million target, PDI data showed. The Brightwood Capital SBIC II fund, also launched in 2013, closed on $44.89 million, slightly under its $50 million target. The 2011-vintage Brightwood Capital SBIC I raised a total of $74.85 million.
The New York-based firm provides debt and equity financing – including first and second lien loans, unitranche, mezzanine debt and minority equity positions – to US companies in the business service, healthcare, transportation and technology sectors, according to its website. The firm focuses on family-owned businesses with $5 million-$75 million in EBITDA.
The firm did not respond to a request to comment.