Kendall Court closes Asia mezz fund on $90m

Kendall Court Capital Partners has closed its maiden mezzanine fund on $90m, with commitments from CDC, Citigroup Venture Capital International and TIF Ventures.

Kendall Court Capital Partners, an Asian mezzanine provider, has held a final close of its debut mezzanine fund with $90 million (€71 million) of commitments, slightly above its original target of $75 million.
 
Kendall Court Mezzanine (Asia) Fund held a first close on $35 million in December 2004 having launched the vehicle in June.
 
Kendall Court said that the fund will make mezzanine investments of between $5 million and $15 million in buyouts, recapitalisations and expansion capital investments, with a focus on mid-sized companies in the Southeast Asia region.
 
Commitments for the fund have been received from primarily institutional investors in Europe and the US, including CDC Group, Citigroup Venture Capital International and TIF Ventures.
 
Chris Chia, managing partner at Kendall Court, said that the continued volatility in the Asian stock markets had encouraged companies to consider alternative sources of funding: “Since our first close we have seen continued affirmations of our thesis in that Asia’s investing environment is currently conducive for mezzanine.”
 
Kendall Court Mezzanine (Asia) Fund has invested in six transactions in the natural resources, downstream oil and gas, power and consumer finance sectors.
 
In April, Intermediate Capital Group, a listed mezzanine capital provider, closed its first Asia-focused mezzanine fund on $500 million, of which $300 million was raised from third-party investors. Before raising its dedicated fund, ICG provided mezzanine financing in Asia, where it has had a Hong Kong office since 2001, from its own capital.