Midwest Mezzanine Funds

What Midwest Mezzanine Funds does

Midwest Mezzanine Funds is a Chicago-based private investment manager founded in 1992 that provides junior capital to lower middle market companies in the United States. The firm structures subordinated debt, second lien term loans, last-out senior secured unitranche loans, and non-control equity co-investments, typically in $4-15 million tickets alongside PE sponsors, independent sponsors, family offices, and management teams for buyouts, recapitalizations, and acquisition financings. It targets companies with at least $3 million of EBITDA in the manufacturing, distribution, and services sectors.

The firm operates through a series of closed-end limited partnership funds, with four vehicles licensed as SBICs by the U.S. Small Business Administration. Across seven funds and 34 years, Midwest Mezzanine has invested more than $1 billion of junior capital in over 150 portfolio companies. Its most recent vehicle, Fund VII SBIC, closed at $267.5 million in October 2024, exceeding its $250 million target and supported by a diversified LP base of family offices, banks, insurance companies, institutional investors, and high net worth individuals. The firm maintains offices in Chicago and Grand Rapids, MI, and operates a relationship-driven origination model with no digital or self-serve channel.

The senior team — three Managing Directors, a CFO, and additional vice presidents, directors, and associates — averages 20+ years of private equity and leveraged finance experience, with backgrounds spanning LaSalle Bank, Heller Financial, BMO Harris, Maxim Partners, Webster Equity, and the Big Four. The business generates revenue primarily through management fees on committed capital, supplemented by deal-related fees and carried interest on investment realizations. Midwest Mezzanine is privately held with no parent company; founder Dave Gezon retired in 2024 and the firm is led by his longtime partners.

Name

Midwest Mezzanine Funds

Legal name

Midwest Mezzanine Funds

Website

https://mmfcapital.com

Company type

Private

Founded year

1992

Operating status

Operating

Headcount range

11–50 employees

Short description

Midwest Mezzanine Funds is a Chicago-based private investment manager founded in 1992 that provides $4-15 million of junior capital (subordinated debt and equity) to lower middle market manufacturing, distribution, and services companies, primarily alongside PE sponsors.

Ownership category

akta.pro rank

Product category

Mezzanine Capital / Junior Debt Financing

NAICS

Portfolio Management and Investment Advice (523940), Other Financial Investment Activities (5239)

SIC

Investment Advice (6282)

akta.pro primary industry

Mezzanine / Subordinated Debt (FSANADAC)

akta.pro secondary industries

Direct Lending — Junior Capital (Second Lien & Mezzanine) (FSAHAJAC), Large-Cap / Sponsor Finance Direct Lending (FSANADAJ), Impact Investment & Development Investment Funds (BPADACAO)

Keywords

• Mezzanine financing
• Junior capital solutions
• Subordinated debt
• Private equity lending
• Middle market investing

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Subordinated Debt Interest: Provides subordinated notes and second lien term loans to portfolio companies, generating interest income. Investment range of $4-15 million per transaction.
2. Equity Co-Investments: Takes non-control equity positions alongside debt investments in conjunction with private equity acquisitions. Generates returns through equity appreciation and eventual exit.
3. Management Fees and Carried Interest: As a fund manager with 7 funds (including 4 SBIC funds), generates management fees on committed capital and carried interest on investment returns.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Midwest Mezzanine Funds provides customized junior capital solutions—including subordinated notes, second lien term loans, last-out senior secured unitranche term loans, and non-control equity co-investments—to lower middle market companies in the manufacturing, distribution, and services sectors. The firm typically invests $4–15 million per transaction in companies with at least $3 million in EBITDA, financing private equity acquisitions, management buyouts, recapitalizations, and expansion capital needs.

Product overview

Midwest Mezzanine Funds is a lower middle-market mezzanine capital provider that offers a unified suite of junior capital products. The core offering consists of subordinated debt (including subordinated notes and second lien term loans), last-out senior secured unitranche term loans, and non-control equity co-investments—typically deployed together in customized capital structures for private equity-sponsored acquisitions. The firm manages multiple closed-end fund vehicles (currently Fund VII SBIC at $267.5 million), each deploying capital within a consistent investment strategy targeting EBITDA greater than $3 million companies in manufacturing, distribution, and services sectors. The firm does not offer a modular software platform; its 'product' is the structured capital solution itself.

Differentiator

Problem solved

Functional benefit

Products and services

• Subordinated Debt Financing

Quantifiable outcome

• 34 years of history as continuously managed mezzanine firm
• +2 more outcomes

Named customers10 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators9 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• Lightspring Capital Partners: Mezzanine and junior capital provider that co-invested with MMF in the ICAT Logistics acquisition — comparable sub-debt and equity co-investment model targeting the lower middle market PE-sponsor base.
• Northcreek Mezzanine: Cincinnati-based lower middle market mezzanine fund manager that has repeatedly co-invested alongside MMF in deals such as Truesdell Corporation and Western States Reclamation, offering very similar subordinated debt and junior capital products to the same PE sponsor base.
• Caltius Capital: Lower middle market mezzanine and junior capital provider that co-invested with MMF in deals such as Paramount Mechanical — directly comparable in fund structure, deal size ($5-20M range) and target sponsor base in the U.S. lower middle market.
• CapX Partners: Chicago-based middle market alternative debt provider focusing on senior, junior and equipment-backed credit facilities to PE-sponsored companies — overlapping product set (senior + junior tranches), geography (Midwest) and customer base with MMF; alumnus James Fox previously worked there.
• Eagle Private Capital: Lower middle market subordinated debt and equity co-investor that has partnered with MMF on multiple deals (Stealth Manufacturing, Charm Medical, The Cleaning Guys) — same product offering, same deal-size band and same PE-sponsor-driven origination channel.
• Oxer Capital: Co-investment partner of MMF across multiple Fund VII deals (Addison Traverse, Integra, Chippewa, Black Creek) — closely comparable as a junior-capital/sponsor-finance co-investor in the same U.S. lower middle market segment.
• Parkway Capital: Mezzanine investor that co-invested alongside MMF in deals such as Bay West and Imagine Technology Group — same product, same geography, same PE-sponsor counterparties.

Broad incumbents

• Main Street Capital: Public BDC providing junior capital (mezzanine debt and equity) to lower middle market companies — significantly larger and more diversified than MMF but competing in overlapping subordinated debt/unitranche segments with similar sponsor-driven originations.
• Golub Capital: Large direct lending and middle market credit franchise offering unitranche, second lien and mezzanine products to PE-sponsored lower middle market companies — broader scale and capital base but same target customer (PE sponsor) and product overlap.

Regional players

• Prairie Capital (now part of First Eagle / alternative credit): Historically a Chicago-area lower middle market mezzanine and sub-debt sponsor competing in the same regional deal market as MMF — comparable product focus on PE-sponsored transactions with similar check sizes and EBITDA thresholds.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/midwest-mezzanine-funds
• Xx.com/mmfcapital

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments3 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Midwest Mezzanine Funds