Capital Point Markets Sophomore Mezz Fund

Firm: Capital Point Partners

Fund: Capital Point Partners Mezzanine Fund II

Target: $200 million

Houston-based Capital Point Partners is out on the fundraising trail for Capital Point Partners Mezzanine Fund II, hoping to raise $200 million.

The firm provides mezzanine securities to mid-market companies undergoing buyouts, recapitalizations, acquisitions and refinancings, as well as ones in need of growth financing. Target companies include ones being bought by equity sponsors, fundless sponsors and management teams. Investment sizes range from $3 million to $15 million in businesses generating between $15 million and $150 million in revenue. Capital Point Partners makes interest-bearing debt investments, primarily focusing on senior subordinated debt with warrants.

The shop seeks to diversify its investments by industry, company types and geography, and invests in manufacturers, service-oriented businesses, distributors, retailers and other specialty businesses. Capital Point Partners typically invests across the United States and selectively in Canada and Mexico.

In June, the firm invested in Tulsa-based David Stone Trucking. Capital Point Partners invested $10 million in senior subordinated debt and teamed up with New Jersey-based Joshua Partners as the transaction sponsor.

In June, the New Haven Policemen and Firemen’s Pension Fund Board pledged $5 million to Fund II; the Policemen’s Pension and Relief Fund of the City of Little Rock committed $3.5 million; the Retirement Systems of the City of Detroit pledged $10 million; and the Seattle City Employees’ Retirement System committed $5 million to the vintage-2006 Fund I, which closed with $125 million in 2008.