Freeport Financial Partners, a U.S. lower middle market direct lending manager, announced the final close of its sixth direct lending fund, Freeport First Lien Loan Fund VI. The fund raised $2 billion in investable capital, including targeted leverage and separately managed accounts investing alongside it.
Fund VI was oversubscribed, exceeding its initial target by over $200 million, with total equity commitments of $1.2 billion and $800 million in targeted leverage. Fund VI obtained commitments from a wide range of institutional investors, including public and private pension plans, insurance companies, as well as endowments and foundations across North America, Europe, and Asia.
Fund VI invests mainly in directly originated and independently underwritten senior-secured first lien, floating rate loans to private equity-owned U.S. lower middle market companies that have EBITDA between $3 million and $25 million. In the past year, Fund VI has deployed approximately 25% of its capital across a diverse group of industries including business services, industrial components and healthcare services.
Freeport has the expertise, knowledge, and flexibility to serve the financing needs of private equity investors and the management teams with whom they invest. And Freeport’s principals have invested together since 2005 and have provided $10 billion in loan commitments to more than 600 companies. Freeport became part of Moelis Asset Management LP in 2012 and it is committed to providing highly competitive financing solutions to lower middle-market companies.
KEY QUOTE:
“We are appreciative of the positive response to our most recent fund from both our existing and new investors to achieve a diversified base of limited partners.”
- Josh Howie, Managing Director at Freeport
