Freeport Financial Partners Raises $518M For New Direct Lending Fund

Oct 26 2016 | 9:40pm ET

Direct lending specialist Freeport Financial Partners has raised $518 million in equity commitments for its third fund, primarily focused on senior-secured first lien, floating rate loans made to PE-owned U.S. middle-market companies.

Including targeted leverage, the new Freeport First Lien Loan Fund III will have approximately $960 million of investible capital, the company said in a statement. Commitments came from a wide range of institutional investors, including public and private pension plans, insurance companies as well as endowments and foundations across North America and Europe.

Fund III will invests primarily in directly originated and independently underwritten senior-secured first lien, floating rate loans to PE-owned U.S. firms with annual sales of $25-$100 million and EBITDA of $3-$25 million.

Over the past year, Fund III has deployed approximately 35% of its capital across a diverse group of industries including business services, industrial components and healthcare services, the statement said.

“We are pleased with the response to our most recent fund from both our existing and new investors to achieve a diversified base of limited partners,” said Josh Howie, managing director at Freeport. 

FIRSTavenue was the placement agent for the fund.

Acquired by Moelis Asset Management in 2012 and based in Chicago, Freeport Financial was founded in 2005 and has deployed more than $2 billion across more than 135 companies. 

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