IAM closes its latest fund with $653m in committed capital – updated

The mid-market lending firm closed on the highest amount of capital it’s raised to date.

Integrated Asset Management Corporation held a final close on its sixth corporate private debt fund.

The Toronto-based firm announced that Private Corporate Debt Fund VI closed on C$843 million ($635 million; €553 million) in capital commitments. This close marks the largest fundraise for the firm’s debt strategy yet.

The firm invests fixed-rate senior secured invest-grade term loans to mid-market companies that have between C$5 and C$60 million in EBITDA, Philip Robson the president of private debt at IAM told Private Debt Investor. He added that the average loan size is C$20 million.

The vehicle deploys capital to back refinancing, acquisitions, plant expansion or modernization, management buyouts, and project financing, according to its website.

IAM deploys capital across a variety of different industries including infrastructure, finance services and food companies, among others, according to the firm’s website. In the fourth quarter, the firm invested C$18.9 million into Flying Colours Corporation, an aviation services company, and made an investment, of an undisclosed amount, to JMB Crushing Systems, an oil field supply company.

Fund VI had 17 investors Robson said. The investor base had repeat clients and 43 percent of the capital in Fund VI was from new investors.

The firm is also in the market with a debt fund that targets non-investment grade borrowers, Robson said. That fund will target returns between 8-12 percent.

“To be truthful that was the focus on where we were earlier in 2018,” Robson said. “In the summer of 2018 a significant number of the investors in Fund V said, ‘When are you doing Fund VI?'”

The firm closed its Integrated Private Debt Fund V in 2016 on C$667 million, which was 98 percent deployed at the end of the third quarter, according to the SEDAR documents.

Integrated Asset Management Corp. is a direct lending firm that was founded in 1998 and has since raised over C$3.5 billion in capital for its debt strategies. The firm has over C$3.1 billion in assets under management.

This story has been updated with information from the firm.