Eqvitec’s third mezzanine fund, Eqvitec Mezzanine Fund III, has reached its target size of EUR103m.
Eqvitec’s third mezzanine fund, Eqvitec Mezzanine Fund III, has reached its target size of EUR103m.
Eqvitec Mezzanine Fund III has attracted new investors as well as support from the investors of previous funds.
Among the key investors of the new fund are European Investment Fund, Nordic Investment Bank, The State Pension Fund of Finland, Finnish Industry Investment, Suomi Mutual Life Assurance and Selected Mezzanine Funds I Ky managed by Pohjola Private Equity Funds Oy.
The new fund increases the total capital base Eqvitec advises to EUR544m.
Eqvitec Mezzanine Fund III is a mezzanine fund investing in small and medium sized companies in the Nordic countries. As with the previous mezzanine funds, the investment strategy of the new fund will emphasize participations in buyouts, recapitalizations, and financing transactions supporting organic and acquisitive growth.
‘Due to the current credit crunch in the banking sector, market conditions are very favourable for mezzanine financing. The fundraising was very successful despite the challenging environment. We are particularly pleased to have a number of new investors in our fund and we even exceeded the original target size of the fund’, says Pertti Nurmio, senior partner and head of mezzanine at Eqvitec.
‘To deploy the excellent market opportunity for mezzanine we decided to increase the fund size compared to the earlier funds. The sector focus of the fund is also broader. Our new fund is uniquely positioned in addressing the growing demand for mezzanine in small and medium sized buyout transactions. We operate in the Nordic market supporting primarily small and medium sized buyout funds and other equity providers.’
Eqvitec’s previous mezzanine fund, which was closed at EUR53m in 2005, is fully invested in eight companies and has completed its investment period.
