One More New Fund: Yukon Partners

While I’m on the first-time fund beat, I may as well mention Yukon Partners, a new mezzanine fund that’s seeking $300 million for its debut fund, according to a source familiar with the situation.

It’s being raised by former Norwest Mezzanine partners Michael Hall and William Dietz. peHUB reported their departures were a surprise, but “orderly and amiable” last February.

Out of any alternative asset in the market, mezzanine (alongside distressed and energy investors), is most likely to find investors with an appetite. This, according to a recent feature in Buyouts.

It’s true that mezzanine investors continue to find and fund deals. Just today Caltius Mezzanine announced the close of its $70 million financing for Odyssey Investment’s take-private of SM&A, a government consulting firm. Not bad, considering the investment is almost 15% of Caltius’ fifth fund. And $70 million is up there in size with most of last week’s announced deals! You may have noticed that a $100-million-plus LBO is a big deal these days. Sad—that figure was $4 billion around this time last year, shrinking to $1 billion over the summer.

So mezzanine and the micro-LBO market forges ahead, and Yukon Partners may be along for the ride. The firm wouldn’t comment on fundraising.

Formed in 2008, the Minneapolis-based firm is led by managing partners Hall and Dietz. Hall was the general partner of Norwest Mezzanine Partners, where we worked for eight years, and before that, Churchill Capital Partners. Dietz was a partner at Norwest Mezzanine.

Firm Website

Previously: Click here to view the growing list of 31 first-time funds in the market.