GMB Mezzanine closes third fund on $290 mln

  • Firm: GMB Mezzanine Capital
  • Fund: GMB Mezzanine Capital III
  • Private capital target: $100 mln
  • Amount raised: $137 mln
  • Total including SBIC portion: $290 mln

GMB Mezzanine Capital drew in $290 million for its third mezzanine fund, surpassing its 2012 predecessor by $50 million, as it continues lending to lower middle-market companies with less than $200 million in enterprise value.

The fundraising total includes two components. The firm raised $137 million from private investors, surpassing its $100 million target. It also drew in about $153 million in capital under the U.S. Small Business Administration’s Small Business Investment Company guidelines.

Large institutions, regional and national banks, family offices and wealthy individuals all invested in the fund.

“Fund III has the same focus as Fund I and Fund II,” Mike McHugh, partner and co-founder of the firm, said in an email to Buyouts. “We invest throughout the U.S.”

GMB Mezzanine Capital typically provides $3 million to $25 million in subordinated debt and non-control equity for buyouts, growth capital for portfolio companies and recapitalizations. It doesn’t invest in real estate, farmland, mining or oil and gas production.

In May, the SBA named GMB Mezzanine Capital the Small Business Investment Company of the year.

Including the latest fund, GMB has raised $730 million since it launched in 2004.

Prior to GMB, McHugh worked for more than nine years at Churchill Capital Inc, including as managing principal of the mezzanine investment team.

Other team members at GMB Mezzanine Capital include Carleton Olmanson, partner and co-founder, and Daniel Hemiadan, partner.

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