Harbert Management Corporation (HMC) has held a final close of $165 million for its third mezzanine fund, according to a statement.
Harbert Mezzanine Partners III attracted new commitments from institutional investors such as public and private pensions, funds of funds and family offices, as well as support from existing investors.
“We are excited to announce the final close of the HMP III,” John Harrison, senior managing director of Harbert Mezzanine Partners, said. “With ten investments already completed and a robust pipeline, the fund is off to a good start,” he added.
Since Fund I launched in 2000, the three funds have invested around $600 million in 96 companies. Harbert Management Partners remains committed to the lower end of the mid-market, across all industries. The funds can invest up and down the capital structure.
The third fund represents the first non-SBIC mezzanine fund for HMC, which means it will be an unleveraged structure. “The investment team is excited about the flexibility the unleveraged structure will provide both in terms of pricing structure and breadth of investment opportunities,” the statement read.
The strategy is to invest $3 to $15 million in small- to medium-sized businesses seeking funding for growth, acquisitions, recapitalisations and management buyouts. HMC had $4.2 billion in assets under management as of 1 April.