Centerfield closes third mezzanine fund

Indianapolis headquartered Centerfield Capital Partners has closed its latest mezzanine and equity fund on more than $170m.

Centerfield Capital Partners has closed its third mezzanine and equity capital fund on more than $171 million, well beyond its $150 million target, the firm announced in a statement.

The Indianapolis, Indiana-headquartered firm launched Centerfield III in 2011, according to a US Securities and Exchange Commission filing. Larry Hollins of placement agent Arch Street Advisors is listed as an associated broker or dealer on the vehicle. Centerfield had not responded to a request for comment at press time.

The fund includes commitments from pension funds, funds of funds, global and regional banks, insurance companies, foundations and high net-worth individuals, according to a statement.  

Centerfield Capital Partners III will continue the firm’s strategy of investing in a combination of subordinated debt and equity, with a target transaction size between $4 million and $12 million per deal.

“Our goal is to invest approximately two-thirds of our capital in high coupon subordinated debt and one third in equity,” said founding partner Tom Hiatt in a statement. “We have the capacity to arrange up to $30 million in financing with participation from our institutional limited partners.”

The firm has already completed eight transactions through Centerfield III, which it began investing in August of 2011. In January, Centerfield led a $27.8 million subordinated debt and equity co-investment to support Kidd & Company’s acquisition of Kidd & Company, a complex precision parts manufacturer.

Hiatt and Scott Lutzke founded Centerfield in 1998. The firm has invested in 40 companies and manages more than $300 million in capital.