Caltius adds two to mezzanine group

The Los Angeles-based firm has tapped Levine Leichtman’s Todd Stemler and CapitalSource’s Gavin Bates to help manage its mezzanine unit’s $500m fourth fund.

Caltius Capital Management has added two new principals to its mezzanine unit to invest and manage the $500 million (€338 million) fund it closed last May.

The Los Angeles-based middle market specialist has added former Levine Leichtman Capital Partners (LLCP) director Todd Stemler and CapitalSource director Gavin Bates to Caltius Mezzanine, which provides subordinated debt in the $5 million to $75 million range.

“[Caltius] was launching their fourth fund, and it was a good opportunity to be part of that launch,” Stemler, who spent just under a year and a half at LLCP, told PEO.

At LLCP, Stemler specialised in providing investment products to the consumer product, light-manufacturing, and service companies in the middle-market, supporting LBOs, growth financings, acquisitions and recapitalisations. Before, Todd worked for Sacramento-based Gael Partners.

Stemler said he will focus his efforts on the business development and management of the Caltius portfolio.

Bates was responsible for sourcing and underwriting cash flow-based senior and subordinated debt transactions for equity sponsors at CaptialSource. He has also worked for Compass Partners and Permira.

Stemler said that Caltius has not yet closed any investments from the new fund.