Audax Private Debt Closes Largest Fund in Firm’s History, Raising $10 Billion in Investable Capital

DLS Fund III advances Audax Private Debt’s leadership in providing financing solutions to private equity owned middle market businesses

NEW YORK--(BUSINESS WIRE)--Audax Private Debt, a leading provider of financing solutions to North American middle market businesses, today announced the final close of Audax Direct Lending Solutions Fund III (“DLS Fund III” or the “Fund”), raising $10 billion of investable capital, including targeted leverage, commitments in DLS Fund III-related vehicles investing alongside the Fund, and investment by the General Partner.

DLS Fund III was significantly oversubscribed, closing at its hard cap with $5.4 billion in equity commitments and exceeding its $4 billion target. The Fund received nearly double the equity commitments of its predecessor, DLS Fund II, which closed on $3 billion in equity commitments and represented over $5 billion of investable capital in 2022. With the close of DLS Fund III, Audax Private Debt manages over $30 billion of total assets focused on the core middle market, having raised more than $47 billion since its inception in 2000.

DLS Fund III provides debt capital to private equity-owned middle market companies, committing up to $350 million per transaction. The Fund is actively investing and, as of today, has committed approximately $1.5 billion of capital.

“The close of our firm’s largest fund to date is an important milestone for Audax Private Debt and enhances our capabilities in providing financing solutions to the core middle market,” said Kevin Magid, Chief Executive Officer. “We are grateful for the strong support we received from investors, which we believe reflects their appreciation of the differentiated exposure we provide as we execute the strategy that has guided Audax Private Debt through a variety of economic and market environments over the last 26 years.”

“DLS Fund III is a landmark fundraise for Audax Private Debt and allows us to further support borrowers and our private equity clients with flexible, scalable financing solutions while we remain highly selective in how we deploy capital,” said Steve Ruby and Rahman Vahabzadeh, Managing Partners of Audax Private Debt. “Our platform combines institutional scale, deep sponsor relationships and a disciplined underwriting approach, positioning us to deliver tailored financing solutions to middle market businesses and attractive outcomes for our investors.”

The Fund attracted commitments from a diverse group of over 100 global institutional investors across North America, Europe, Asia-Pacific, Latin America and the Middle East, including leading pension funds, sovereign wealth funds, insurance companies, family offices, endowments and foundations, and high net worth investors.

Campbell Lutyens served as placement agent for the fundraise and Ropes & Gray LLP acted as fund counsel.

About Audax Private Debt

Based in New York, Audax Private Debt is a leading debt capital partner for North American middle market companies, with a 26-year track record. Since inception in 2000, Audax Private Debt has invested $56 billion across more than 1,350 transactions and provided financing to over 300 private equity sponsors. The firm provides tailored financing solutions through a comprehensive range of offerings, including first lien, stretch senior, unitranche, second lien and subordinated debt, as well as equity co-investments.

For more information, please visit audaxprivatedebt.com or follow us on LinkedIn.