Asset Manager

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Midwest Mezzanine Funds

Midwest Mezzanine Funds is a lower middle market junior capital provider focused on financing private equity acquisitions of businesses in the manufacturing,...

Midwest Mezzanine Funds logo

Midwest Mezzanine Funds

Midwest Mezzanine Funds is a lower middle market junior capital provider focused on financing private equity acquisitions of businesses in the manufacturing, distribution and services sectors. Since its founding in 1992, it has partnered with private equity firms, independent sponsors, family offices and management teams to provide over $1 billion of junior capital to more than 140 privately-owned, lower middle-market companies throughout the United States. It continues to provide customized and flexible financing solutions through its seventh $267.5 million fund, Midwest Mezzanine Fund VII SBIC, L.P.

General information

Firm type

Generalist

Year founded

1992

Location

Region

North America

Country

United States

City

Chicago

Corporate office

150 North Wacker Drive, Suite 2525, Chicago, IL 60606, United States

Sector focus

ManufacturingBusiness ServicesDistribution & LogisticsIndustrial Tech

Frequently asked questions

Who runs investment decisions at Midwest Mezzanine Funds?

The firm names only its four Managing Directors as the senior investment decision-makers. A ten-person team executes deals, with the Managing Directors averaging more than 20 years of private-equity and lending experience and over a decade of collaboration at the firm (per the firm website). No chief investment officer is separately disclosed.

How does Midwest Mezzanine source deal flow?

The firm originates deals nationally through relationships with private equity sponsors, independent sponsors, family offices, intermediaries, banks and professional service firms. As one of the oldest continually managed mezzanine houses in the United States, it cites repeat transactions with multiple private equity firms as a core sourcing advantage (per the firm website).

What is the current fund size and structure?

The current vehicle is Midwest Mezzanine Fund VII SBIC, L.P., a $267.5 million fund licensed under the Small Business Investment Company program (per the firm, 2024). The SBIC structure allows the firm to access leverage through the SBA while maintaining its exclusive focus on lower-middle-market companies.

What size of company does Midwest Mezzanine target?

The firm targets US lower-middle-market companies with EBITDA above roughly $3 million (per the firm website). These are privately owned businesses, and the firm partners exclusively with financial sponsors on acquisition and recapitalisation transactions.

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