CMS Mezzanine, a new mezzanine fund managed out of Wynnewood, Penn., has raised $40 million toward its latest fund, a source familiar with the situation said. The firm held a first close for the $40 million in December and hopes to hold a final close on $50 million in the coming months.
CMS Mezzanine in managed in conjunction with CMS Companies, a Philadelphia investment firm. It will invest $2 million to $6 million in lower-middle market companies with at least $10 million in revenues.
The fund is managed by managing directors Robert Palmer, formerly of Spring Capital Partners, Lyle Cunningham, formerly with the equity sponsor group of National City Bank, Chief Investment Officer William A. Landman of CMS, and Daniel Eisenstadt, Managing Director CMS Investments.
CMS also has a small-cap fund, which invests in companies with less than $6 million in cash flow.
For a list (and excel spreadsheet) of around 30 debut funds in the market, click here: First-Timers in the Market