CapMan Credit currently advises CapMan Mezzanine V Fund, a EUR 95 million fund, which invests in subordinated debt primarily supporting leveraged buyouts in the Nordic region. CapMan Mezzanine V had six portfolio companies as of the end of December 2014.
Mezzanine has been a part of CapMan’s investment activities since 1995. In total, CapMan has raised almost €600 million of mezzanine fund commitments and funded more than 50 mezzanine investments in the Nordic region.
What is mezzanine?
Mezzanine is a flexible debt instrument that shares characteristics of both debt and equity. It is often positioned in between senior bank debt and equity, and has a contractual return in combination with access to capital gains. Typically, mezzanine is used to partly finance acquisitions made by private equity funds. However, it can also be used for refinancings, add-on acquisitions and expansion financing.
What do we look for?
• Strong and defendable market positions
• Positive and predictable cash flow generation
• Experienced management teams
• Focus on Nordic-based businesses
• Primarily private equity-owned
• Investment size typically €5-15 million