Audax Group, an alternative asset management firm specializing in investments in North American middle market companies, announced the final close of Audax Senior Loan Fund III at its hard cap of $500 million of committed equity.

SLF III was oversubscribed and exceeded its fundraising target of $400 million of equity. The fund will employ modest leverage, utilizing a credit facility of over $1.1 billion in commitments, bringing the total investable capital of the fund to more than $1.6 billion.

The investment strategy of SLF III will remain consistent with that of the Audax Senior Debt business, investing primarily in first lien senior secured loans to U.S. middle market companies as part of private equity-sponsored buyouts.

Since its founding in 1999, Audax has raised more than $15 billion of capital and currently manages more than $11 billion through its Private Debt and Private Equity businesses. Audax Senior Debt, part of Audax Private Debt, is based in New York. Audax also has offices in Boston and Menlo Park. The firm raises its capital from a mix of U.S. and international institutional investors, including public and corporate pension funds, insurance companies, endowments and foundations and high net worth families, in addition to a significant commitment from the firm’s senior professionals.

“We appreciate the support from our existing and new investors and thank them for their commitment to Audax,” said Co-Chief Executive Officers Geoffrey S. Rehnert and Marc B. Wolpow. “The continued demand for our senior debt products underscores the capability of our team, our differentiated approach and our investors’ confidence in our consistent track record of delivering attractive risk-adjusted returns.”