Lower middle market junior capital investor (SBIC, debt and non-control equity)
Midwest Mezzanine Funds
- HeadquartersChicago, IL S3
- Founded1992 S3
- Websitemmfcapital.com
- Last verifiedNovember 6, 2026
At a glance
| Latest fund | Midwest Mezzanine Fund VII SBIC, L.P., $267.5M (October 2024) S7 |
|---|---|
| EBITDA range | $3M+ S2 |
| Check size | $4M to $15M S2 |
| Deal types | Minority, Add-on, Growth S2 |
| Geography | United States S2 |
| Sectors | Industrial & Manufacturing, Distribution, Construction Services |
What Midwest Mezzanine Funds buys
Midwest Mezzanine Funds is a Chicago junior capital firm, founded in 1992, that finances deals alongside private equity sponsors rather than buying companies itself. It provides subordinated notes, second lien loans and last-out senior loans, and it often takes a non-control equity stake next to the debt. It has provided more than $1 billion to more than 150 companies, and it now invests from its seventh fund, the $267.5 million Fund VII SBIC.
It wants US companies with more than $3 million of EBITDA and a steady record of profit, mainly in light manufacturing, value-added distribution and services. It stays out of financial services, high technology, restaurants, retail and real estate development. Investments usually run from $4 million to $15 million, and it can go larger with co-investors. An owner would normally meet it through a buyer, not directly: its deals back sponsors' purchases, recapitalizations and add-ons, as with Bluezone Investment Partners' purchase of C. Cowles & Company in October 2026.
Recent deals
Announced in the 24 months before November 6, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| October 2026 | C. Cowles & CompanyDebt and equity backing Bluezone Investment Partners' purchase of this maker of boiler burners and controls | Investment | Industrial & Manufacturing | Source |
| September 2026 | SiteScapesSubordinated debt and equity, with Navigate Capital, backing Leelanau Private Capital's recapitalization of this retaining wall contractor alongside its two largest shareholders | Investment | Construction Services | Source |
| December 2025 | Performance Stamping (Addison Traverse Manufacturing)$7.5 million of subordinated debt and equity, with Oxer Capital, for an add-on by Colfax Creek's Addison Traverse | Add-on | Industrial & Manufacturing | Source |
| October 2025 | Vapor Systems Technologies$14 million of subordinated debt and equity backing Ancor Capital Partners' purchase of this vapor recovery equipment maker | Investment | Industrial & Manufacturing | Source |
| June 2025 | Valley Lighting$7 million of subordinated debt and equity, with LongWater Opportunities, backing Caymus Equity's purchase | Investment | Distribution | Source |
| April 2025 | Quiltcraft Industries$10.25 million of subordinated debt and equity, with Providence Investment Partners, backing Willistown Capital's recapitalization; the company is now part of Threadwell | Investment | Industrial & Manufacturing | Source |
Portfolio by sector
From the firm's portfolio page S6.
Distribution
- Valley Lighting
- American Key Supply Recent investment
- Automotive Color & Supply Corp. Recent investment
Healthcare
- Foundation Dental Partners Recent investment
Manufacturing
- C. Cowles & Company
- Addison Traverse Manufacturing
- Diversified Fall Protection
- Threadwell
- Vapor Systems Technologies
- Alcrete Industries Recent investment
- Spire Collective Recent investment
- Stealth Manufacturing Recent investment
Services
- Bay West
- Chippewa Concrete Services
- SiteScapes
- Black Creek Integrated Systems Recent investment
- Integra Testing Services Recent investment
- Metal Tech of Murfreesboro Recent investment
Greymont’s take
How Midwest Mezzanine Funds fits a seller
This firm is not a buyer in the usual sense. It takes only non-control equity, so an owner will rarely sell to it. It shows up inside the financing when a private equity firm, independent sponsor or family office buys or recapitalizes a business. Its site also names management teams as partners and lists management buyouts, so a leadership team planning to buy out an owner could approach it.
For an owner selling to a sponsor, Midwest Mezzanine's money sits between the senior lender and the equity, and it may own a small slice of the company too. Owners rolling equity should ask how much junior debt will sit ahead of them, what it costs the company each year, and what rights the lender's equity carries. Its long record of repeat sponsor deals makes it a familiar name to many lower middle market buyers.
Questions owners ask
Does Midwest Mezzanine Funds buy companies?
No. It provides junior debt and non-control equity while a private equity firm or other sponsor does the buying. In October 2025, for example, it put subordinated debt and equity behind Ancor Capital Partners' purchase of Vapor Systems Technologies.
How would a business owner meet Midwest Mezzanine Funds?
Usually through a buyer. The firm says it specializes in financing sponsor-backed change of control deals, so an owner would most often see it as part of a buyer's financing, not as the party across the table.
What size company does it finance?
It looks for US companies with more than $3 million of EBITDA and consistent profits. Investments typically run from $4 million to $15 million, and it can reach beyond $15 million by co-investing with its limited partners or other junior capital firms.
Does Midwest Mezzanine Funds always take equity?
No. Its C. Cowles, SiteScapes and Vapor Systems Technologies deals paired debt with equity, but its November 2025 Bay West and January 2026 Diversified Fall Protection deals were subordinated debt refinancings with no equity mentioned.
Sources
- S1Midwest Mezzanine Funds home page Accessed November 6, 2026
- S2Midwest Mezzanine Funds: Focus (investment criteria) Accessed November 6, 2026
- S3Midwest Mezzanine Funds: About Accessed November 6, 2026
- S4Midwest Mezzanine Funds: Portfolio Accessed November 6, 2026
- S5Midwest Mezzanine Funds: News Accessed November 6, 2026
- S6Midwest Mezzanine Funds overview (June 2026) Accessed November 6, 2026
- S7Midwest Mezzanine Successfully Closes Fund VII SBIC at $267.5 Million (October 2024) Accessed November 6, 2026
- S8Midwest Mezzanine 2025 Year in Review (January 2026) Accessed November 6, 2026
- S9Midwest Mezzanine Invests Subordinated Debt in Bay West (November 2025) Accessed November 6, 2026
- S10Midwest Mezzanine Invests Subordinated Debt in Diversified Fall Protection (January 2026) Accessed November 6, 2026
- S11Threadwell home page (Quiltcraft and Fabtex combined) Accessed November 6, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with Midwest Mezzanine Funds. Figures are as reported on the dates shown and may have changed. Request a correction