Chicago-based Freeport Financial has raised $160 million and reached a first close on its third fund, sources close to the situation said. The new fund will focus on senior secured loans to lower mid-market borrowers, the sources added.
London-headquartered First Avenue is placement agent on the fundraising, the sources said.
Freeport’s last fundraise was its Freeport Financial SBIC Fund which closed in 2013 with $80 million in commitments from investors and $150 million in leverage from the Small Business Association (SBA) bringing total investment capacity to $230 million.
That fund invests in senior debt and unitranche deals for lower mid-market: private equity-owned companies with more than $3 million in EBITDA.
Freeport is owned by boutique investment bank, Moelis & Company. It originates, underwrites and syndicates mid-market loans for sponsor-backed companies.