Audax Group confirmed today with an SEC filing that it is in the market raising a $750 million mezzanine fund, a follow-up to the firm’s $700 million second fund. The fund was first reported by peHUB in July.
At the time, Audax Co-CEO Geoff Rehnert told peHUB that the firm expected to close on Audax Mezzanine Fund III LP in Q4, however the SEC filing does not indicate any capital raised. I’ve got a call in to Audax about why that is. UPDATE: Audax called back with no comment, given SEC restrictions against marketing.
The firm’s prior mezz fund may be nearing full deployment, considering it was 70% spent in July.
Unless, of course, mezzanine deal flow has been as slow as it has been on buyout side. A lack of deals is why Audax has held off on formal fundraising for its fourth buyout fund. In the first half of the year, the firm pre-marketed Audax Private Equity Fund IV LP, but decided to wait until it had deployed more of its third fund before raising more. Makes sense, since Fund III was only 50% deployed as of July, even after doing ten add-on transactions in the first half of the year. That means the firm was sitting on around $500 million of the $1 billion pool, it has only done a few small add-on deals since then.The firm will likely enter the market with its new buyout fund after deal flow picks up in 2010.