Daily News: April 29, 2015

Harbert Management Raises $165MM for Third Mezzanine Fund

Harbert Management announced the final closing of its third mezzanine debt fund, Harbert Mezzanine Partners III, at $165 million. The Fund has completed this final close thanks to strong support from existing investors and new commitments from other leading institutional investors including public and private pensions, fund of funds and family offices.

“We are excited to announce the final close of the HMP III,” said John Harrison, senior managing director of Harbert Mezzanine Partners. “With ten investments already completed and a robust pipeline, the Fund is off to a good start.”

Since the inception of the first mezzanine fund in 2000, the Harbert Mezzanine Partners (HMP) funds have successfully invested approximately $600 million in 96 companies. HMP remains committed to the lower end of the middle market and are actively seeking investments across all industries.

HMP treats each investment as a true partnership with the management team and its financial sponsors and has the ability to move up and down the balance sheet to fit the needs of its portfolio companies. The Fund represents the first non-SBIC mezzanine fund for HMC. The Investment Team is excited about the flexibility the unleveraged structure will provide both in terms of pricing structure and breadth of investment opportunities.

“We would like to thank all of our advisors, co-investors, deal sources and portfolio companies for a successful first 15 years,” Harrison concluded. “We look forward to the strengthened relationships with our investors and continued success for many years to come.”

Harbert Management is sponsoring the Fund. HMP III’s primary strategy is to invest $3-$15 million in small- to medium-size businesses seeking funding for organic growth, acquisitions, recapitalizations and management buyouts. The Fund is led by John C. Harrison, senior managing director of each of the predecessor funds executing HMC’s mezzanine capital strategy: Harbinger Mezzanine Partners and Harbert Mezzanine Partners II and Harbert Mezzanine Partners II SBIC.