Investment Criteria

Audax invests in junior debt and equity securities of private equity-owned middle market companies. We invest in a variety of industries and seek companies with the following characteristics:

  • Established and sustainable value proposition
  • Leading and defensible market position
  • Revenue and cash flow stability
  • Proven and experienced management teams
  • Strong equity sponsorship

We invest in traditional mezzanine securities as well as unitranche financings. We also seek to co-invest equity together with our sponsor partners. Below are our target investment sizes:

  • Mezzanine: Up to $100 million
  • Unitranche: Up to $150 million
  • Senior Debt: Up to $75 million (via Audax Senior Debt platform)

Audax Mezzanine seeks to add value to portfolio companies in many ways beyond the initial financing. Following a transaction, we maintain an ongoing dialogue with ownership and management and can support add-on acquisitions with incremental financing. In addition, Audax Mezzanine takes a collaborative, solutions-seeking approach when faced with a downturn in a portfolio company’s financial results.

View the Audax Mezzanine portfolio.

Transaction Types

Audax Mezzanine will invest in a variety of different transaction types, including:

  • Leveraged and management buyouts: We partner with leading equity sponsors and management teams to capitalize leveraged buyout or management buyout investment opportunities.
  • Acquisition financings: We partner with leading middle market companies pursuing strategic acquisitions.
  • Recapitalization and refinancings: We invest in middle market businesses that are effecting a recapitalization or are refinancing existing debt.