Preqin data shows that there are currently 48 mezzanine funds raising globally targeting an aggregate USD 22.8bn in capital commitments. The largest mezzanine vehicle currently on the road is TCW Energy Fund XV which is part of a series of funds raised by TCW Group investing in asset based energy and energy-related infrastructure projects on a global basis. It has a bias for mezzanine debt but an allocation to equity as well. The second largest mezzanine fund currently raising is Barclays Structured Principal Investing Fund. It is managed by Barclays Capital and seeks to provide financing through instruments ranging from unitranche and 2nd lien loan facilities to holdco notes and non-control equity co-investments.
Mezzanine vehicles raised 86.4 billion globally between 2005 and 2010 ytd, with the majority of the capital raised by US focused funds, followed by European and Asia and Rest of World focused vehicles. The capital raised stood at USD 62.5bn, 19.2bn and 4.7bn respectively. 2008 proved to be the most prosperous in the period for the mezzanine private equity market, 36 vehicles raised nearly USD 31bn. This was largely due to the final closing of GS Mezzanine Partners V that year. The fund managed by Goldman Sachs Private Equity Group raised in total USD 20bn of which USD 13bn was equity commitments and the remaining USD 7bn leverage.
For more information on private equity fundraising, please see Preqin’s Funds in Market product