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Eaglehill, backed by Koch Industries, closes debut lending fund

  • Eaglehill launched in 2014
  • Koch Industries backed Fund I with $100 mln
  • Targets US middle market companies

Eaglehill Advisors, formed by bankers from Citigroup, closed its debut middle-market lending fund on $250 million, according to a person with knowledge of the process.

Eaglehill got a big boost in 2015 when it launched the fund from Koch Industries, which kicked in a $100 million commitment to the fund. Fund I closed last month.

Managing Partners Jason Cunningham and Michael Zicari run Eaglehill and formed the shop in 2014. Cunningham formerly was a managing director in Citi’s alternative-asset group. Zicari had been a managing director in the leveraged-finance and liability-management groups at the bank.

Cunningham did not respond to a request for comment.

FocusPoint Private Capital Group was placement agent on the fundraising.

Eaglehill lends directly to U.S. middle-market companies generating $5 million to $100 million in EBITDA. The firm focuses on industries like industrials, retail, paper and packaging, specialty manufacturing, healthcare, energy, specialty financing and consumer.

Management fees are similar to market: Fund I charges 1.75 percent during the commitment period, according to the firm’s Form ADV. After the commitment period, the fund charges 1.75 percent on invested capital, the Form ADV said.

Interestingly, the firm made provisions if the fund lasts into its extension period. Most PE funds have 10-year fund lives plus two one-year extensions.

If the fund’s term is extended for one year, the fund charges a 1.25 percent management fee on invested capital, the document said. If the fund is extended for another one-year period, the management fee would drop to 0.75 percent of invested capital.

Action Item: Check out Eaglehill’s Form ADV: http://bit.ly/2jbW0Qk

David Koch, executive vice president of Koch Industries, attends the Economic Club of New York luncheon in New York on Dec. 9, 2013. Photo courtesy Reuters/Shannon Stapleton