Gryphon Investors held a first-and-final close on $100 million for its debut mezzanine fund Gryphon Mezzanine Partners that will be managed by Gryphon’s existing team. Commitments came mostly from existing limited partners. The mezzanine fund will participate exclusively on a minority basis in the mezzanine securities of recent and prospective financings of Gryphon 3.5 and Gryphon IV.
Gryphon Investors (“Gryphon”), a San Francisco-based private equity firm, today announced that it held a first and final closing of Gryphon Mezzanine Partners, L.P. (“the Fund”) at its cap of $100 million of aggregate commitments, excluding the GP commitment. The Fund was oversubscribed and reached its cap primarily with commitments from existing LPs. This credit fund represents a new and complementary investment strategy for Gryphon, which has previously raised four institutional control private equity funds.
The Fund will participate exclusively on a minority basis in the mezzanine securities of recent and prospective financings of Gryphon 3.5 and Gryphon IV, led by leading third party institutional lenders. The Fund’s initial “seeded” portfolio investments include the 2017 financings of three Gryphon portfolio companies: Wind River Environmental, Orchid Underwriters, and Ob Hospitalist Group. The Fund will be managed by existing Gryphon professionals.
David Andrews, Founder and CEO, said, “Over the past few years, a number of our limited partners seeking current-yielding investments have asked us about opportunities to participate in the debt financings of Gryphon’s portfolio companies. This fund is designed primarily to satisfy that LP demand. We are pleased to have run an efficient ‘one and done’ fundraise that reached its cap after only a few months of focus, and we greatly appreciate the enthusiastic and timely support we received from our investors.”
For the past 20 consecutive quarters, Gryphon has placed on Preqin’s “Consistent Performers” quarterly North American buyout rankings for its flagship private equity strategy. Gryphon’s most recent private equity buyout fund, Gryphon IV, which closed in November 2016 at $1.1 billion, now includes seven portfolio company investments and is approximately 80% committed.
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About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. For 20 consecutive quarters, Gryphon has been ranked in Preqin’s prestigious quarterly PE report as one of North America’s top-decile buyout firms based on consistency of strong investment returns. Managing over $2.6bn of equity investments and capital since 1997, the firm has an extensive track record of leading equity investments of $50 million to $200 million per portfolio company with sales ranging from approximately $100 million to $500 million. Gryphon prioritizes investment opportunities where it can form proactive partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.