Austin, Texas – Blue Sage Capital, a leading lower-middle market private capital firm, today announced the first and final close of the Blue Sage Strategic Credit Fund, L.P. (the “Fund”), at $287 million, including a substantial commitment from the General Partner. This fundraising occurred only months after Blue Sage announced the closing of its $618 million flagship buyout fund, Blue Sage Capital IV. The Fund was significantly oversubscribed, closing above its initial target of $150 million and initial hard cap of $262 million. Blue Sage structured the new fund as a Small Business Investment Company (SBIC) and limited the fund size to maintain its lower-middle market focus. Blue Sage is backed by a global group of Limited Partners, including well-known college/university endowments, charitable foundations, pension funds, large family offices, insurance companies, and entrepreneurial individuals. Several of the Limited Partners have now partnered with Blue Sage across multiple prior funds, some going back to the firm’s founding almost 25 years ago.
The Fund continues Blue Sage’s strategy of partnering with founders, families, and management teams in high-potential lower-middle market businesses. As with prior Blue Sage funds, the fund focuses on investment partnerships with environmental solutions, niche manufacturing, and specialty services companies in North America, particularly in Texas, the Southwest, and the Midwest. The Fund will invest in both debt and equity securities, with the flexibility to provide creative investment structures that align well with their partners’ needs. The firm strongly prefers to be the first institutional investor in the companies with which it partners.
Peter Huff, Founder and Managing Partner of Blue Sage, expressed his thanks, stating, “We would not be where we are today without the consistent support of our Limited Partners and the trust they place in Blue Sage. We are also happy to announce that Spencer Klein and John Baizer have recently joined us to help invest the new fund. Spencer and John both bring extensive experience investing in the lower middle market.”
Blue Sage Capital raised the Fund without a placement agent and engaged Troutman Pepper Locke as fund counsel. With the Strategic Credit Fund closed, Blue Sage has now raised over $1.5 billion during its lengthy history, maintaining its heritage of investing in the lower middle market.
* Past performance is not indicative of future results.
About Blue Sage Capital
Blue Sage Capital is an Austin, Texas-based private equity firm that has been investing in profitable and growing lower middle-market companies since 2002. Blue Sage seeks to partner with founders, families, and management teams as the first round of institutional capital for businesses that enjoy leadership positions in niche manufacturing, environmental solutions, or specialty services industries. Across its funds, Blue Sage typically invests $5 million to $60 million in equity and debt in growing companies with $10 million to $200 million of revenue.