Gryphon Investors Raises $100M For Debut Mezzanine Fund

Aug 24 2017 | 9:54pm ET

San Francisco-based private equity company Gryphon Investors has held a first and final close for its inaugural mezzanine fund, hitting the vehicle’s hard cap of $100 million in capital commitments.  

The new fund, named Gryphon Mezzanine Partners, L.P., was oversubscribed, the firm said in a statement. This credit fund represents a new and complementary investment strategy for Gryphon, which has previously raised four institutional control private equity funds.

The mezzanine fund, which will be managed by existing Gryphon executives, will participate exclusively on a minority basis in the mezzanine securities of recent and prospective financings of Gryphon 3.5 and Gryphon IV funds. 

“Over the past few years, a number of our limited partners seeking current-yielding investments have asked us about opportunities to participate in the debt financings of Gryphon’s portfolio companies,” said David Andrews, Gryphon founder and CEO, in the statement. “This fund is designed primarily to satisfy that LP demand. We are pleased to have run an efficient ‘one and done’ fundraise that reached its cap after only a few months of focus.”

Gryphon raised $1.1 billion in November of last year for its fourth buyout pool, which is now approximately 80% committed, the company added. 

Founded in 1994, Gryphon Investors focuses on North American middle-market companies in business services, consumer products and services, healthcare, and industrial growth industries. The firm makes investments of $35 million to $150 million per portfolio position and has raised approximately $2.5 billion of cumulative equity commitments.

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