Madison Capital will take the new fund,
The vehicle will enable Madison Capital to raise its loan investments up to $45 million. Today, the firm typically provides $20 million to $25 million per deal, sometimes as much as $30 million, Williams told Buyouts.
OFS, of Rolling Meadlow, Ill., declined comment. The firm, founded in 2000, typically makes loan investments of $3 million to $20 million, focusing on sponsor finance for companies with revenue above $30 million and EBITDA above $5 million, according to its Web site.
Madison Capital will manage the underwriting infrastructure for the new vehicle, Williams said.
OFS originally had planned a collateralized loan obligation structure for the new vehicle, but that market collapsed in the financial crisis, and OFS now has filed for a business development company license, Williams said.
“This investment will be the first deal for that entity,” he said. “CLOs are very complicated structures. This is very simple.”