Gemini Partners Inc. on Wednesday launched a fund to provide short-term secured debt financing for small to middle-market companies, filling a niche that has persisted since the credit crunch began last year.

Gemini Partners, a Los Angeles boutique investment bank, has provided debt financing for established clients before, but this it the first time it has offered such financing on a general basis, said Vice President Ryan Fisk.

Called the Alacrity Capital Fund, the financing arm recently closed its initial $5 million fund, which it raised from private investors. It is expected to provide financing of between $500,000 to $2 million in ?ridge?debt to companies prior to an event, such as a merger, acquisition or larger capitalization, where greater liquidity is needed.

?hroughout Southern California there are a lot of good, small companies that need help in the current environment getting to the next level of growth,?Fisk said.

The partners expect to see the fund, which ultimately could reach $100 million, grow to at least $20 million over the next 12 months, he said. Gemini managing partner Matthew Johnson will manage the portfolio.

Gemini Partners most commonly works with companies with EBIDTA (earnings before interest, taxes, depreciation and amortization) in the $5 million to $20 million range.