MezzVest, the mezzanine finance division of funds advisory firm CapVest, has closed its second mezzanine finance fund, MezzVest II, with an investment capacity of €1.5bn over the next four to five years. Investors in the fund include AIG, insurance companies and - to a smaller extent - endowments, pension funds, banks, governments and funds of funds.
The new fund will buy and hold senior mezzanine assets ranging from €20-100m. MezzVest II will also invest in second lien investments, junior mezzanine investments and high-yield bridges to achieve greater flexibility. LP commitments are in the region of €570m, with leverage accounting for the substantial increase in capacity.
MezzVest II will build on the success of MezzVest I which was structured using CDO technology and carved out a reputation for pioneering the warrantless mezzanine market. MezzVest II will continue the strategy of working in partnership with Mandated Lead Arrangers and Financial Sponsors to structure deals with optimum returns for all parties.
Lemy Gresh, CEO of MezzVest, said, ‘We are delighted to have closed our new fund so rapidly. The response from our investors in MezzVest I has been particularly gratifying, with over ninety percent recommitting and significantly increasing their average investment. This is a tribute to our team who have worked to make MezzVest I such a success. We are also highly appreciative of the support we have received from the investment banking and financial sponsor community and look forward to many more years of fruitful collaboration.’
MezzVest, formed in 2000, began making warrantless mezzanine investments in January 2001 with funds initially provided by AIG. The firm launched its first third-party fund in 2002: MezzVest I is a leveraged fund in which up to €450m of rated debt has been raised on top of the €280m LP funds. Together with the first fund, the firm now has a total investment capacity of approximately €2.4bn.
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