BB&T Bags $227M Mezz Fund

BB&T Capital Partners, the lower middle market private equity firm, raised its second mezzanine fund and beat its target, reeling in $227 million. The PE firm will invest via subordinated debt and equity in middle market companies. The fund will also be structured as an SBIC.

PRESS RELEASE:

BB&T Capital Partners Mezzanine Fund II Closes With $227 Million in Capital

BB&T Capital Partners, a lower middle market-focused private equity and mezzanine provider, is pleased to announce the closing of BB&T Capital Partners Mezzanine Fund II, LP. The new mezzanine fund, which exceeded its target and closed with capital commitments of $227 million, will invest $5 million to $20 million per transaction in subordinated debt and equity in privately held middle market companies across the United States. Although the new mezzanine fund has the ability to invest in larger transactions than its predecessor fund, BB&T Capital Partners Mezzanine Fund II will continue to follow the same investment strategy of supporting both sponsored and non-sponsored buyouts, acquisitions and recapitalizations.

Structured as a Small Business Investment Company (SBIC), BB&T Capital Partners Mezzanine Fund II will provide flexible junior capital and will target companies with at least $15 million in revenue and $4 million of cash flow. BB&T Capital Partners Mezzanine Fund II will consider investments in business services, government services, industrial services, education, healthcare, logistics, niche manufacturing and value-added distribution companies. Tom Westbrook, the Partner responsible for directing the mezzanine investment effort at BB&T Capital Partners, said “We have a successful track record as patient, long-term investors committed to working closely with sponsors and company management teams to create stable capital structures and optimal investment outcomes for all parties.”

David Townsend, Managing Partner of BB&T Capital Partners added “We are grateful to BB&T Corporation for their continued support as our largest limited partner and for their dedication to supporting the capital needs of small businesses. We are also gratified by the support of our other institutional investors.” To date, the new fund has completed three transactions and enjoys a strong pipeline of opportunities to support businesses with solid fundamentals and management teams with a vision for long term value creation.

About BB&T Capital Partners

BB&T Capital Partners, based in Winston-Salem, NC, manages over $725 million in committed capital across a family of private equity funds focused on serving the equity and subordinated debt needs of small and middle market companies based in the United States. The family of funds includes two equity funds (BB&T Capital Partners, LLC and BB&T Capital Partners II, LLC), two mezzanine funds (BB&T Capital Partners/Windsor Mezzanine Fund, LLC, and BB&T Capital Partners Mezzanine Fund II LP) and BB&T Capital Partners Fund of Funds I, LLC which is an investment vehicle dedicated to investing in other leading private equity firms focused on lower middle market buyouts.