Garrison holds $65m first close

New York-based Garrison is targeting between $700m and $800m for its Fund IV.

Garrison Investment Management has held a $65 million first close for its fourth opportunity fund, a source with knowledge of the vehicle told Private Debt Investor.

Last week, the firm filed a Form D with the US Securities and Exchange Commission indicating that it had raised at least $55 million for the fund. An additional $10 million is being drawn down at a later date, the source said, adding that the fund will likely be in market for the “next couple quarters”.

Garrison is targeting $500 million in commitments from onshore investors, with an additional $200 million to $300 million coming from offshore limited partners.

The fund will pursue the same investment strategy as previous Garrison funds, albeit with a longer, three year investment period. The investment mandate allows for investments in illiquid credit as well as the purchase or origination of commercial and industrial loans, focusing specifically on underpriced assets or temporary dislocations.

Garrison Opportunity Fund III closed on $707 million in 2012. Fund III, which had a two year investment period, is fully invested, the source said. That fund received commitments from Fort Washington Capital Partners, the Sacramento County Employees’ Retirement System and the Texas County and District Retirement System, according to Private Equity International’s research and analytics division.

Garrison was founded in 2007. The New York-headquartered firm has approximately $3.2 billion of assets under management, according to its website.