Greyrock Capital Raises Second Mezz Fund

Greyrock Capital Group has closed its second mezzanine and junior capital fund with $122 million in capital commitments.

Greyrock Capital Group today announced the final closing of GCG Investors II, LP, a $122 million mezzanine and junior capital investment fund. Greyrock’s Fund II is comprised of a diverse group of U.S. and European-based institutional limited partners, including investors from its first fund, GCG Investors, LP.

Greyrock’s first fund, which was formed as an SBIC in 2002 with $72 million of private investor capital, has invested over $266 million in 33 platform companies across a variety of industry sectors. Greyrock targets investments in profitable, lower middle-market businesses with strong market presence and enduring competitive advantages, typically with valuations between $10 million and $200 million.

“With many commercial banks retreating from their small and middle-market lending practices, we foresee an attractive environment for investing in middle-market companies,” commented Mark Shufro, Managing Partner of Greyrock. Greyrock’s Fund II has already closed four transactions with total commitments of $31 million.

“Our existing Fund II investments were instrumental in attracting investment from our limited partners” Shufro said. “The fact that we had already identified and invested in a number of attractive businesses gave these institutional investors confidence in our investment strategy.”

With the close of Fund II, Greyrock Capital Group now manages over $350 million of capital. Greyrock provides mezzanine debt and equity to finance buyouts, recapitalizations and the internal growth needs of middle-market companies. Over its history, Greyrock has invested in over 100 leading manufacturing, consumer goods, building materials, industrial equipment and service businesses. Greyrock makes mezzanine debt and equity investments of between $5 million to $15 million and serves management teams and equity sponsors throughout the country from offices in San Francisco, Chicago and Westport, CT. Greyrock’s limited partners have a strong interest in co-investments, and in conjunction with these partners, Greyrock has provided financing packages in excess of $30 million.

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