Ironwood Closes On $150M, Eyes More

Ironwood Capital Advisors is nearing completion of its second mezzanine and equity fund. The final tally will likely surpass an initial target of $150 million, according to a source familiar with the firm’s fundraising effort.

The Boston-based firm in December held a second close on $150 million, including leverage from the Small Business Investment Company program, for Ironwood Mezzanine Fund II. The firm anticipates holding a final close in February that will exceed its target, according to our source.

Ironwood Capital set out to raise $50 million in equity and borrow $100 million more from the SBIC program. A year ago, Buyouts reported a first close on $31 million in equity, and at the time the firm’s president, Marc Reich, said Ironwood Capital hoped to hit the $50 million mark by early second quarter of 2007.

Ironwood Capital collected money from at least eight limited partners, including AXA Equitable; CUNA Mutual; Farmington Savings Bank; HSBC; ING; Phoenix Insurance; St. Paul Travelers; and TD Bank North.

The firm takes minority stakes business services, consumer products and health care companies. Ironwood Capital expects to invest in between 22 and 25 companies with the second fund.—J.H.