Metropolitan Partners Group holds final close on Fund V

Metropolitan Partners Group has held a final close on its latest direct lending vehicle.

Metropolitan Partners Fund V closed on $172 million in committed capital, with potential for additional co-investments, on 5 December, the firm announced on Friday. The fund launched in July, targeting at least $150 million, according to a source familiar with the situation.

The firm declined to comment beyond the announcement.

The source added the vehicle will follow the same strategy as the firm’s past four funds. It will invest in non-sponsored lower mid-market companies in the US that are looking to fund a period of growth and have not previously received institutional funding. The firm typically invests across specialty finance, infrastructure, telecom, heavy equipment, niche manufacturing and automation companies.

The vehicle will deploy senior-secured short-term one-to-three-year loans of between $5 million and $25 million, on average. The firm can offer second lien loans in special situations, according to its website.

Fund V is more than a quarter deployed so far. The vehicle has made investments across six different companies totalling $50 million. Longstone Capital Advisors served as placement agent for the fund, the source said.

The vehicle’s investor base includes family offices, institutional investors and university endowments. Texas Tech University re-upped its investment from Fund IV, committing $57 million to Fund V; it invested $30 million in Fund IV.

Fund IV closed in 2017 on $115 million of committed capital as well as co-investment capital, and has since been entirely deployed. Fund V and Fund IV are significantly larger than their predecessors; Fund II and Fund III closed on $18 million and $22 million, respectively.

Metropolitan Partners Group is a New York-based direct lending firm. Since its founding in 2009, the firm has invested more than $600 million. The firm has $282 million in assets under management.