Exclusive: Freeport Financial reaches €160m first close

The Moelis-owned lower mid-market lender has reached first close on its third fund and second since the bank acquired Freeport in 2012.

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.