GMB Mezzanine Capital has closed its third SBIC fund at over $270 million. GMB Mezzanine Capital III’s limited partners include regional and national banks, family offices and high-net worth individuals. The fund will focus on making investments between $3 million and $25 million in lower middle market companies with valuations under $200 million.
MINNEAPOLIS–(BUSINESS WIRE)–The principals of GMB Mezzanine Capital are pleased to announce the successful closing of GMB Mezzanine Capital III, L.P. (“the Fund” or “GMB”) in excess of $270,000,000.
GMB exceeded its targeted size with a diversified mix of Limited Partners, including large institutional investors, regional and national banks, family offices and high net worth individuals. “We are very grateful for the confidence and support of our Limited Partners. The appeal of the mezzanine investment class and the opportunities offered by our middle-market focus and well-developed sponsor relationships resonated with many investors,” said Mike McHugh, Partner at GMB.
The Fund will generally invest $3 million to $25 million in subordinated debt and non-control equity in lower middle-market companies with enterprise values under $200 million. The Fund will assist private equity sponsors in buyout transactions, their portfolio companies’ growth capital and acquisition needs, and recapitalizations, across a broad range of U.S. based industries.
The Fund has been licensed by the U.S. Small Business Administration as a Small Business Investment Company (“SBIC”) and is the third SBIC formed and managed by the principals of the Fund.
GMB’s investment team members each have long been active in private company, middle market financings, investing in a wide range of businesses, transaction types and capital structures across multiple business cycles. “Our team looks forward to supporting our private equity partners in their merger and acquisition efforts,” commented Cully Olmanson, Partner. “We believe that the timing for raising the new capital pool is right, and that our strong deal flow will provide ample high-quality opportunities during its investment period,” commented Dan Hemiadan, Partner.
About GMB funds
The two predecessor funds invested $507 million in a geographic diverse group of 66 portfolio companies from 2005 to 2016. Additional information on GMB can be found at www.gmbmezz.com.