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Global Fundraising for Mezzanine Private Equity Funds

by Kamarl Simpson

  • 20 Jun 2011
  • PE

Preqin’s Funds in Market product lists 65 vehicles with a focus on mezzanine investment that are currently in market. Collectively, these funds are targeting USD 26.6 billion in capital commitments. 51% have already had at least one interim close, and aggregate commitments for these funds currently stands at USD 5.8 billion.

41 GPs raising mezzanine funds are based in North America and of these, 39 are located in the US.  17 fund managers are based in Europe, with the remaining five located throughout Asia and Rest of World. In terms of geographical focus, over half (40) of the funds target opportunities primarily in the North America. A further 17 funds focus on investment in Europe, and the remaining eight funds target investment opportunities throughout Asia and Rest of World.

The largest mezzanine fund currently in market is the GSO Capital Opportunities Fund II, being raised by Blackstone Group. The vehicle is seeking USD 3 billion and primarily invests in privately negotiated transactions, including LBOs, recapitalizations, refinancings, add-on acquisitions and growth financings in North America and West Europe.

As of June, three mezzanine funds have reached final close in 2011 having raised an aggregate USD 6 billion. Of these the largest fund is the USD 4.12 billion EIG Energy Fund XV.  The fund, managed by EIG Global Energy Partners invests in asset based energy and energy-related infrastructure projects on a global basis with focus on OECD countries, with a bias for mezzanine debt but with an allocation to equity.

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