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

Audax Private Debt, a New York-based provider of financing to North American middle market businesses, announced the final close of DLS Fund III, raising $10 billion of investable capital according to a Business Wire release. The fund closed at its hard cap with $5.4 billion in equity commitments, above its $4 billion target. The company said the equity raise was nearly double that of its predecessor, DLS Fund II, which closed on $3 billion in equity commitments and represented over $5 billion of investable capital in 2022.

DLS Fund III lends to private equity-owned middle market companies and commits up to $350 million per transaction. The fund is actively investing and had committed approximately $1.5 billion of capital as of the announcement date. Audax Private Debt, which has a 26-year track record, said it has invested $56 billion across more than 1,350 transactions and financed over 300 private equity sponsors since inception. Its product set includes first lien, stretch senior, unitranche, second lien and subordinated debt, as well as equity co-investments.

Kevin Magid, Chief Executive Officer, described the close as an important milestone that enhances the firm's capabilities in the core middle market. Managing Partners Steve Ruby and Rahman Vahabzadeh said the platform combines institutional scale, sponsor relationships and disciplined underwriting, while the firm remains highly selective in deploying capital.

The fund attracted commitments from more than 100 institutional investors across North America, Europe, Asia-Pacific, Latin America and the Middle East. Campbell Lutyens served as placement agent and Ropes & Gray LLP acted as fund counsel. Other trade coverage has described the raise as part of a record fundraising year for the firm.