At present there are 67 mezzanine private equity funds on the road collectively targeting over $24bn in capital commitments. Twenty-five of these funds have held at least one interim close and have raised almost $5bn to date. The majority of these mezzanine funds in market are focused on investment in North America, with 58% of the 63 funds predominantly targeting investments in the region. Twenty-three percent of the funds are primarily Europe-focused, and the remaining 19% are mainly targeting investment in Asia and Rest of World.
The average target size of all mezzanine funds currently in market is $408mn, with four vehicles that are targeting $1bn or more – Highbridge Mezzanine Fund II, Crescent Mezzanine Partners VI, ICG Europe Fund V, and Prudential Capital Partners IV fund. The largest fund in market is Highbridge Mezzanine Fund II, which is seeking $3bn in capital commitments. The vehicle primarily invests across North America with a significant allocation to European opportunities, and has no specific industry focus.
Preqin’s data shows that 24 mezzanine funds have reached a final close in the last 12 months, raising aggregate capital commitments of almost $11bn. The largest of these closed mezzanine funds is GSO Capital Opportunities Fund II, which raised $4.1bn. The fund, managed by Blackstone Group’s credit arm GSO Capital Partners, invests in privately negotiated transactions, including LBOs, recapitalizations, refinancing, add-on acquisitions, and growth financings.