Preqin data shows that there are currently 48 mezzanine vehicles raising globally targeting an aggregate USD 20.2bn in capital commitments. The largest mezzanine fund currently on the road is TCW Energy Fund XV. The fund is part of a series of funds investing in asset-based energy and energy-related infrastructure projects on a global basis with a bias for mezzanine debt but an allocation to equity as well. TCW Energy Fund XV is seeking USD 2.5bn in capital commitments.
In terms of regional focus, North America-focused funds dominate with 31 mezzanine vehicles targeting an aggregate USD 13.7bn. These are followed by 12 European funds seeking an aggregate USD 5.2bn in capital commitments and five Asia and Rest of World-focused mezzanine funds targeting USD 1.4bn.
Data from Preqin’s Funds in Market product shows that so far this year 14 mezzanine funds have reached a final close. They garnered an aggregate USD 4.9bn in capital commitments. The largest fund to reach a final close was Sankaty Middle Market Opportunities Fund which closed in April on USD 904mn. The fund invests in mid-sized companies as part of buyout-related or rescue-financing transactions. It also acquires mezzanine securities on the secondary market. The second largest mezzanine vehicle to have closed this year was ABRY Senior Equity III. It targets investments in technology, telecoms, communications, media, information services and business services sectors. ABRY Senior Equity III closed in April on USD 750 million. The third largest mezzanine fund to close in 2010 YTD was Partners Group European Mezzanine 2008. It closed in June on EUR 553 million. Partners Group European Mezzanine 2008 makes mezzanine and special situations investments. The fund predominantly pursues direct mezzanine investments but may also opportunistically engage in primary and secondary investments.
For more information on private equity fundraising, please see Preqin’s Funds in Market product.