A week ago we reported on Boathouse Capital, a new mezzanine fund formed by alumni of American Capital (ACAS). We had very few details except the names of the professionals. Today I learned a little more information from a source.
The Wayne, Penn.-based firm is in fundraising mode with a target of somewhere between $75 million and $225 million, based on its intended deal size. After forming last fall and launching fundraising last month, the fund already held a first close on between 65% and 75% of the target amount. Beyond raising capital, the firm hopes to receive SBIC approval to increase its leverage in the fall.
Boathouse Capital seeks to invest up to $15 million in sponsor-backed and direct transactions.
As we wrote last week:
Boathouse Capital is the second of what’s sure to be numerous new middle market lenders entering the fray in the aftermath of industry-wide layoffs. Last week CastleGuard Partners launched from the ashes of Freeport Financial, which earlier this year laid off all but four of its employees. Last summer the former vice chairman of CIT Group launched Tygris Commercial Finance Group, and former American Capital professionals formed Maranon Capital.
American Capital has undergone several rounds of layoffs, beginning as early as April 2008. Kenneth Jones, Stephen Gord, William Dyer and Chong Moua of the firm’s Philadelphia office joined forces to launch Boathouse Capital, which began fundraising toward an undisclosed sum of capital in the fall. The firm has applied for an SBIC license in hopes to leverage whatever amount of capital it raises. Boathouse Capital has not done a deal to date but plans to make mezzanine debt and non-control equity investments of up to $15 million “in top quality, later-stage businesses,” the company said.