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Beechbrook more than halfway to target following €67m Fund II first close

23 May 2013

euro_note_170sqLower mid-market private debt manager Beechbrook Capital is more than halfway to its target for its second mezzanine fund after holding a €67m first close.

Beechbrook said it had another €25m of further pledges circled for more closes later this year, putting it well on the way to gathering the €100m to €120m it hopes to collect.

European Investment Fund co-founder and partner Nick Fenn told AltAssets in January that it had made a “significant” anchor investment into the fund, which he revealed was targeting an initial close in the first quarter.

The UK Government’s Department of Business, Innovation and Skills has also committed to the vehicle alongside four other LPs.

Beechbrook said the EIF and the DBIS had both backed the fund in response to the continuing dearth of funding available to lower mid-market companies from banks and mainstream institutional lenders.

It said that scarcity had resulted in excellent deal flow for its own business, which looks to support companies with enterprise values of between €10m and 100m in the UK and Northern Europe.

The firm’s €100m first fund is now fully invested into 16 portfolio companies across the UK and Ireland, Benelux and the German-speaking countries.

Those deals include a unitranche loan and equity co-investment to support Baird Capital’s buyout of law recruitment agency SR Group, and a mezzanine loan and equity co-investment to support the acquisition of the McCambridge cakes division by NBGI, the buyout arm of the National Bank of Greece.

Fenn previously headed the loans syndication and mezzanine functions at Mizuho Corporate Bank before leaving to set up Beechbrook Capital in 2008 alongside Paul Shea, who spent four years in the Financing Division of Schroders and five years at MetLife.

Both Fenn and Shea established and managed a third party mezzanine fund at Mizuho Investment Management, which is now part of FTSE 250-listed private equity firm 3i.

London-based Beechbrook operates with a team of eight people, and said it planned to take on two additional two members at associate level following the first close.

In December the firm announced the promotion to partner of team member Michiel Boorsma, who joined in 2010 from Helsinki and London-based peer Nordic Mezzanine.

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