Lakeside Capital Management has closed its second middle-market mezzanine capital fund, GMB Mezzanine Capital II, with $240 million. The fund has been licensed by the U.S. Small Business Administration as a Small Business Investment Company, the firm said in a statement. GMB Mezzanine Capital II invests $3 million to $18 million in subordinated debt and non-control equity in lower middle-market companies with enterprise values under $100 million. The firm is based in Minneapolis.
Lakeside Capital Management is pleased to announce the final closing of its second middle-market focused mezzanine capital investment fund, GMB Mezzanine Capital II, at $240,000,000. The fund has been licensed by the U.S. Small Business Administration (“SBA”) as a Small Business Investment Company (“SBIC”) and is the second SBIC formed and managed by Lakeside Capital.
Lakeside exceeded its targeted fund size with a diversified mix of Limited Partners, including family offices, regional and national banks and large institutional investors. Commented Mike McHugh, Managing Principal, “While the environment throughout was challenging, 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. We are grateful for their confidence and support.”
GMB Mezzanine Capital II invests $3 million to $18 million in subordinated debt and non-control equity in lower middle-market companies with enterprise values under $100 million. The fund assists private equity and independent sponsors in buyout transactions, their portfolio companies’ growth capital and acquisition needs, and recapitalizations, across a broad range of U. S.-based industries.
All of the fund’s investment team members 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. Currently, GMB Mezzanine Capital II has invested $41.5 million in seven portfolio companies, each of which is a very successful, well-established manufacturer or distributor under private equity sponsor ownership. “Our team looks forward to supporting our private equity firm partners as merger and acquisition activity expands,” commented Cully Olmanson, Managing Principal. “We believe that the timing for raising this new capital pool is right, and that our strong deal flow will provide ample high-quality transaction opportunities during its investment period.”
About Lakeside Capital
Lakeside Capital’s prior fund invested $207 million in a geographic and industry diverse group of 29 portfolio companies from 2005 through 2010.