Firm: Black Canyon Capital
Fund: Black Canyon Direct Investment Fund II LP
Target: To be determined
Placement Agent: None
The Los Angeles-based shop did not use a placement agent to help it raise its first fund, a $500 million vehicle raised in 2006. But it might employ one this time and is currently interviewing placement agents, the source said.
Black Canyon will likely seek to raise an amount “in the same neighborhood” as the first fund,
Firm executives plan to formally launch the fundraising effort by the end of the year or early in 2011, the source said.
Black Canyon recently recorded a nice exit, which should help it encourage existing and prospective investors to support a follow-up fund. Along with co-investor
Black Canyon was founded in 2004 by Managing Directors Michael Hooks and Mark Lanigan, who were formerly co-heads of Credit Suisse First Boston’s Los Angeles investment banking department. Today the firm has nine investment professionals and has a partner relationship with Canyon Capital Advisors LLC, a Los Angeles-based asset manager with more than $14 billion of assets under management.
Black Canyon invests $25 million to $75 million in control-stake and minority investments in companies with EBITDA of at least $5 million. The firm also provides mezzanine debt and senior and subordinated loans. Black Canyon has invested more than $1 billion in companies in the business services, consumer products and retail, health care, media, restaurants, niche manufacturing, and industrial sectors.