CapMan mezz fund posts second close

Nordic private equity firm CapMan has announced the second closing of its fourth mezzanine fund, CapMan Mezzanine IV, on €142.5 million ($192 million).

The fund does not have an official target size, but in a statement the firm said it was expecting “additional commitments from new investors” prior to a final closing in March 2005.

CapMan Mezzanine IV, which posted a first closing on €105 million in July 2004, will make mezzanine investments in mid-market Nordic companies in the manufacturing, service and retail industries with net sales between €50 million and €500 million.

The fund has already made one investment in Finnish discount store chain Tokmanni. Other recent mezzanine investments from CapMan funds have included Norway’s EuroProcessing International, Denmark’s Anhydro Group and Sweden’s Metallfabriken Ljunghall.

Mezzanine IV allows investors to participate in the fund by subscribing to listed asset-backed bonds issued by Finnish special purpose vehicle Leverator plc. Leverator is providing a loan facility to the fund managed by CapMan’s Guernsey subsidiary. “The new fund structure offers more flexibility to investors, who can choose to invest in listed bonds, limited partnership interests or a combination of these,” said CapMan CEO Ari Tolppanen.

CapMan, which has €1.25 billion under management, has raised three previous mezzanine funds: Finnmezzanine I, which closed on €31.4 million in 1995; Finnmezzanine II (€88.3 million in 1998); and Finnmezzanine III (€135.5 million in 2000).