M&A vets prep $500m BDC

US mergers and acquisitions veteran Eric Gleacher has filed to take public a ‘business development company,’ Gleacher Investment, amid a glut of similar vehicles.

Yet another group has filed to launch a business development company. New York-based Gleacher Investment Corporation will seek $500 million (€419 million) from the public for senior and mezzanine debt investments in private companies.

According to filing documents with the SEC, Gleacher Investment is to be managed by Eric Gleacher, the founder of Gleacher Partners and the former head of mergers and acquisitions at Lehman Brothers and head of global mergers and acquisitions at Morgan Stanley.

Joining Gleacher in the management of the vehicle will be Emil Henry and Jeffrey Tepper, also Morgan Stanley veterans. Gleacher Partners, an advisory firm, has offices in New York, London, Greenwich, Connecticut, Atlanta and Hong Kong.

Like the many BDCs that have already filed to go public, Gleacher Investment will invest in “debt and equity securities of privately held middle-market companies,” according to filing documents.

Earlier this month, Boston buyout firm Thomas H. Lee Partners indicated it is seeking $500 million (€423 million) for THL Investment Capital, according to the prospectus. The vehicle, which if successful offered will trade on the public market, will ‘generate both current income and capital appreciation through debt and equity investments,’ according to filing documents.

Los Angeles-based Gores Technology is seeking $250 million for Gores Investment Corporation, a business development company that will make mezzanine, senior secured and debtor-in-possession loans to middle-market ‘technology and telecommunications companies,’ according to the prospectus.

Since April, a number of US private equity firms have filed to take public BDCs, including KKR, Blackstone, Kelso/BlackRock, Evercore, Prospect Street and Porticoes. These filings follow the successful April IPO of Apollo Investment, which raised $930 million for a vehicle tied to New York private investment giant Apollo Advisors.