Blue Sage Capital, a private capital firm focused on the lower-middle market, announced the first and final close of its Blue Sage Strategic Credit Fund, L.P., at $287 million, including a significant general partner commitment. The fund, structured as a Small Business Investment Company (SBIC), was substantially oversubscribed, surpassing its initial $150 million target and $262 million hard cap. 

The new vehicle comes only months after the close of Blue Sage Capital IV, the firm’s $618 million flagship buyout fund, and underscores the strong support Blue Sage has garnered from a diverse global LP base, including university endowments, foundations, pensions, large family offices, insurers, and entrepreneurial investors. 

Blue Sage will use the Strategic Credit Fund to target environmental solutions, niche manufacturing, and specialty services companies across North America, with a particular emphasis on Texas, the Southwest, and the Midwest. The fund is designed to provide flexible capital solutions, investing in both debt and equity securities to support growth and strategic transitions. 

Blue Sage raised the new fund without a placement agent and engaged Troutman Pepper Locke as fund counsel. Since inception, the Austin-based firm has now raised more than $1.5 billion across its investment strategies.