Charter Capital targets $100 million for new mezz fund

A new mezzanine fund based in Grand Rapids seeks to raise $100 million to invest in growing companies, MiBiz has learned.

Charter Growth Capital Fund LP wants to back lower middle-market companies in the Great Lakes region that need $1 million to $5 million in capital to grow, recapitalize the business, or make an acquisition. The fund will target profitable companies with annual revenues of $10 million to $50 million.

Executives at Charter Capital Partners, working through Growth Capital Management LLC, sought to create the new mezzanine fund after seeing a need within their own work at the investment banking and M&A firm, said Dale Grogan, a manager of the new fund.

“The market has spoken,” Grogan told MiBiz. “There is a demand in the market.”

Most established mezzanine funds have a minimum deal size of $5 million, “if not $10 million,” Bultynck said. Finding mezzanine capital of even $4 million or $5 million “is very, very difficult to do,” he said.

“I just thought this was a perfect opportunity to raise a fund to focus on doing deals close to home in a bite size where there is a lot more demand than there is supply,” Bultynck said. “There is a lot of demand for it.” Read more at MiBiz

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