Mezzanine fund (subordinated debt with minority equity)
NorthCoast Mezzanine
Formerly Spell Capital Mezzanine
- HeadquartersMinneapolis, MN S5
- Founded2012 S1
- Websitenorthcoastmezz.com
- Last verifiedNovember 11, 2026
At a glance
| Latest fund | NorthCoast Fund III, $285M (2022) S2 |
|---|---|
| EBITDA range | $3M+ S3 |
| Check size | $4M to $20M S3 |
| Deal types | Minority S3 |
| Geography | United States S2 |
| Sectors | Industrial & Manufacturing, Distribution, Roofing, Consumer & Food, Healthcare Services |
What NorthCoast Mezzanine buys
NorthCoast Mezzanine does not buy companies. It is a Minneapolis fund that lends the junior layer of money in a deal, called subordinated or mezzanine debt, and usually buys a small ownership stake beside the loan. It never takes control. It puts $4 million to $20 million into US companies with at least $3 million of EBITDA in many industries, from roofing and distribution to food, manufacturing and healthcare. It wants steady demand, a spread of customers, repeat revenue and a proven management team.
Its money pays for buyouts led by private equity firms, handovers to managers or family members, add-on acquisitions, recapitalizations and growth. It can be the only investor, lead a group, or invest beside another institution. The team began in 2012 as Spell Capital Mezzanine, part of Spell Capital Partners, and became independent as NorthCoast in 2022 when it raised a $285 million third fund. A fourth fund had its first close in October 2025.
Recent deals
Announced in the 24 months before November 11, 2026.
| Date | Company | Type | Sector | Source |
|---|---|---|---|---|
| August 2026 | Premier Building AssociatesSubordinated debt and equity in the acquisition of a Connecticut commercial roofing company | Investment | Roofing | Source |
| July 2026 | HighPoint Exterior Home ServicesSubordinated debt and equity co-investment to fund the purchase of Five Points Roofing; HighPoint is owned by Lake Street Capital Partners | Investment | Roofing | Source |
| June 2026 | VanZandt Controls/Eagle AutomationSubordinated debt and equity co-investment backing ShoreView Industries' purchase of a Texas supplier of valves and flow-control products | Investment | Distribution | Source |
| May 2026 | Undisclosed building materials distributorSubordinated debt and equity in an acquisition; the company is not named | Investment | Distribution | Source |
| April 2026 | Holiday House DistributingSubordinated debt and equity co-investment backing the purchase of a Florida distributor of parts and supplies for office coffee services | Investment | Distribution | Source |
| April 2026 | Summit DrillingSubordinated debt and equity co-investment to fund the add-on purchase of Preferred Drilling Solutions; Summit does environmental drilling and remediation in the Eastern US | Investment | Source | |
| November 2025 | YZY FragrancesSubordinated debt and equity in the acquisition of a Miami fragrance maker | Investment | Consumer & Food | Source |
| October 2025 | Madden MediaSubordinated debt and equity co-investment as the Tucson advertising agency joined with Karsh Hagan | Investment | Source | |
| October 2025 | NorthCoast Fund IVFirst close of Fund IV; no amount given. The fund received its SBIC license in January 2026 | Fund close | Source | |
| August 2025 | Comprehensive EyeCare PartnersSubordinated debt and preferred equity co-investment in a recapitalization of a Nevada eye care practice management firm | Investment | Healthcare Services | Source |
| June 2025 | QPCSubordinated debt and equity co-investment to fund the add-on purchase of Texas Finishing Company by a powder coating business | Investment | Industrial & Manufacturing | Source |
| December 2024 | Harvest ValuationsSubordinated debt and equity co-investment backing Brass Ring Capital's recapitalization of an Illinois valuation services firm | Investment | Source |
Portfolio by sector
From the firm's portfolio page S4.
Subordinated debt and equity
- Premier Building Associates
- HighPoint Exterior Home Services
- VanZandt Controls/Eagle Automation
- Undisclosed building materials distributor
- Holiday House
- Summit Drilling
- YZY Fragrances
- Madden Media
- CompEye
- QPC
- Harvest
- Aurora
- Micro-Dyn
- Shake Smart
- Arctic Industries
- NATA Compliance Services
- Creative Memories
- Coastal Amusements
- ProFusion
- Brandito
- Alpine Bearing
- Colby Auto
- Lewis Brass
- Peak Performance
- Acterra Group
- Yandell
- Terra Staffing
- Customer Contact Services
- Driver Industrial Safety
- GT Golf
- Pacific Paper
- Green Garden
- Mobile Pro
- Turtle Fur
- ProWest
- Custom Computer Specialists
- CarCovers
- Galleher Lumber & Steel
- Alexandra Foods
- Masters Building Products
- Solar Light
- Undisclosed chemotherapy medical device company
- Pilot Power
- Majoris
- Denali Communications
- FBF Originals
- Drake Equipment
- Undisclosed home healthcare provider
Subordinated debt only
- Undisclosed workforce compliance software company
- Shields Harper
- Griffin Gear
- Grace Management
- Avalon
- WeClean
- IT Voice
- Concrete Polishing & Restoration
Other
- Behrens
Greymont’s take
How NorthCoast Mezzanine fits a seller
NorthCoast is not the buyer in a sale. An owner is most likely to meet it as part of the money behind someone else's offer: a private equity firm, a management team or a family member buying the company. Its loan sits behind the bank's, which lets a buyer pay more of the price in cash at closing. Because it does not take control, it can also help an owner who wants to buy out a partner, fund an acquisition or take some money out while keeping the company.
Mezzanine debt costs more than a bank loan, and it has to be repaid. An owner who keeps a stake after the deal should ask what interest rate the company will carry, when the loan comes due, and how large an ownership share NorthCoast takes beside it. About six in seven of its current holdings include an equity stake.
Questions owners ask
Does NorthCoast Mezzanine buy companies outright?
No. It provides subordinated debt and non-control equity. Its approach page lists three structures: fixed rate subordinated debt, subordinated debt with equity upside, and minority equity co-investments.
What size of company does NorthCoast Mezzanine finance?
Its approach page lists companies with EBITDA of $3 million and above and investments that generally range from $4 million to $20 million, or larger with co-investment partners.
Does a company need a private equity owner to work with NorthCoast?
No. Besides buyouts led by private equity firms, it lists ownership transitions driven by managers or families, acquisitions, recapitalizations and growth capital, and it says it can act as the sole investor.
Is NorthCoast Mezzanine the same firm as Spell Capital Mezzanine?
It is the same team under a new name. In 2022 the senior team bought the mezzanine business from Spell Capital, renamed it NorthCoast Mezzanine and raised Fund III. It still manages the two earlier Spell Capital Mezzanine funds.
Sources
- S1NorthCoast Mezzanine home page Accessed November 11, 2026
- S2NorthCoast Mezzanine: About Us (story, history, fund sizes) Accessed November 11, 2026
- S3NorthCoast Mezzanine: Investment Approach Accessed November 11, 2026
- S4NorthCoast Mezzanine: Current Portfolio, with each company's own page for security type Accessed November 11, 2026
- S5Spell Capital Mezzanine Closes Fund III and Rebrands as NorthCoast Mezzanine (posted July 1, 2022; dateline September 2022) Accessed November 11, 2026
- S6NorthCoast Mezzanine 2026 Mid-Year Review (August 6, 2026) Accessed November 11, 2026
- S7NorthCoast Mezzanine 2025 Year in Review (February 19, 2026) Accessed November 11, 2026
- S8NorthCoast Mezzanine: News Accessed November 11, 2026
- S9NorthCoast Mezzanine: Realized Portfolio Accessed November 11, 2026
Compiled by Greymont Advisors from public sources, including the firm’s own website and press releases. Greymont is not affiliated with NorthCoast Mezzanine. Figures are as reported on the dates shown and may have changed. Request a correction