Preqin’s Funds in Market product shows 56 private equity mezzanine funds currently in market. Collectively, the funds are targeting a little over USD 24.2 billion; 30 have already held at least one interim close raising just under USD 5 billion for mezzanine investment. Seven of the funds held their most recent close prior to 2010, 22 during 2010, and only one since the start of 2011.
66% of the fund managers in market with a mezzanine fund are based in North America, 25% in Europe and the remaining 9% across Asia and Rest of World.
66% of the funds mainly focus their investments in the US, a further 21% focusing in Europe and the last 13% primarily targeting opportunities across Asia and Rest of World.
The GSO Capital Opportunities Fund II is the largest mezzanine fund currently in market, seeking to raise USD 3 billion. The Blackstone Group’s fund has a diversified approach to industries and sectors, and is positioned to aid upper mid-market companies that are struggling due to the unavailability of credit.
The debut mezzanine fund from Kohlberg Kravis Roberts, the KKR Mezzanine Partners I fund, is targeting USD 1 billion and held a first close at the end of Q1 2010 on USD 350 million. It has a global and diversified industry focus, but has stringent investment criteria of positive, stable companies that have defensible market positions and strong management teams.