Merit Capital Partners is raising its fifth mezzanine fund. The Chicago-based mezzanine investor is targeting $588 million and has not held any closes to date. The firm’s prior fund was raised in 2004, garnering $455 million in total commitments. Merit Mezzanine was started in 1993 as part of William Blair & Co. In 2005, the general partners of William Blair Mezzanine Capital Partners formed Merit Capital Partners as an independent entity, raising Merit Mezzanine Fund IV, L.P. The firm has invested in such companies as Fleischer’s Bagels, Manistique Papers, Skyline Windows and Tom Cat Bakery.