NorthCreek Mezzanine has held a first close on $48 million on its second fund, managing partner Barry Peterson told Private Debt Investor. The firm is targeting $50 million for the fund.
‘We’re ecstatic,” he said. “We got to our target so quickly, we didn’t go very broad. We had a select group.”
Fund II includes commitments from institutional investors and high net worth investors, he said.
Cincinnati-based NorthCreek typically provides loans between $1 million and $8 million in size, typically taking on deals as a sole investor or co-investor alongside another institution. The firm can provide senior or subordinated debt with terms ranging from three to five years.
Peterson attributed the firm’s recent fundraising success to the supply / demand imbalance for liquidity at the lower end of the market.
“Most mezzanine funds that are raised are doing much larger transactions,” he said. “Most of the funds in the market are doing $5-$10 million; that market is getting squeezed by BDCs and other providers.”
NorthCreek is led by Peterson and Rodger Davis. Peterson and Davis have completed a combined 41 transactions totaling more than $230 million over their careers, according to the firm’s website.