Crain News Service
CLEVELAND -- With the backing of heavy hitters from the city's corporate and investment communities, MCM Capital Corp. raised $50 million for its first leveraged buyout and venture fund.
The fund, which closed Feb. 20, likely will invest in eight to 10 Midwest businesses. It mainly will undertake leveraged buyouts of companies with annual revenue between $25 million and $70 million, said Mark E. Mansour, president of MCM Capital. The fund also may secure minority stakes in companies with annual revenue between $3 million and $20 million, he said.
MCM Capital's general partners are A. Malichi Mixon III, chairman and chief executive of Invacare Corp.; Mr. Mansour; his father, Cleveland lawyer Ernest Mansour; Crawford Fitting Co. President Joseph Callahan; and James Poffenberger, MCM Capital executive vice president. The general partners invested a total of $10 million in the fund.
Nearly $24 million was raised from institutional investors; the rest came from high-net-worth individuals with diverse industry and corporate experiences, Mr. Mansour said.