Paris-based mezzanine fund manager Euromezzanine Conseil has held a final closing of its fifth vehicle on €660 million ($827 million), exceeding its original target of €600 million.
Louis Vaillant, senior partner at Euromezzanine, said in an interview that the firm held a first close of the fund on just over €300 million last July.
Vaillant said the €212 million Euromezzanine 3 and €427 million Euromezzanine 4 are now fully invested. Fund 3 stopped investing in October 2002, having deployed mezzanine funding in 22 transactions, while fund 4 had invested in 26 deals by December 2005.
Euromezzanine 5 will underwrite mezzanine tranches of between €6 million and €90 million in 30 to 40 predominantly French transactions. The fund will focus on investments in mid-market companies with enterprise values of between €50 million and €500 million.
Despite the increase in fund size, Vaillant said the firm remains focused on the mid-market. “We occasionally do large transactions, but we don’t generally want to go into that space. There are more opportunities in the mid-market, more deals and increased deal sizes. We invested fund 3 in three-and-a-half years, fund 4 in three years, and we expect to invest fund 5 in between three and four years, so there is no change in our strategy.”
Euromezzanine 5 has already made investments in six deals to date, including Industri Kapital’s purchase of French pre-cast concrete producer Bonna Sabla from Axa Private Equity last August; the acquisition of French hardware products business Tréfilaction by Pragma Capital and CIC LBO Partners from CDC Enterprises and Banexi Capital Partners in Feburary 2006; and Franco-German investor Alpha Group’s buyout of baking ovens manufacturer Mecatherm from 21 Centrale Partners, Astorg Partners and Copega earlier this month.