Syntaxis, the independent specialist mezzanine provider focused on the Central European mid-market, has received a commitment of up to EUR50m to its second fund from the European Bank f
Syntaxis, the independent specialist mezzanine provider focused on the Central European mid-market, has received a commitment of up to EUR50m to its second fund from the European Bank for Reconstruction and Development.
Syntaxis Mezzanine Fund II will provide mezzanine finance for expansion, restructurings, acquisitions and buyouts.
Portfolio companies will be owner-managed mid-market companies in the EU-member states of the CEE region.
In the near-term Syntaxis will focus on the economies of Poland, the Czech Republic and Slovakia, with typical investments in the region of EUR10 to EUR20m, though the fund will be capable of underwriting significantly larger amounts.
In December 2008 Syntaxis held the final close of its first fund, Syntaxis Mezzanine Fund I, and the firm now advises just under EUR120m of commitments on behalf of fund investors.
The EBRD was an anchor investor in the first fund, committing EUR25m. Fund I is over 80 per cent invested, having underwritten and led mezzanine in seven transactions with an aggregated enterprise value of EUR890m.
Investments cover a range of sectors, including consumer debt purchase and recovery, generic pharmaceutical production, cable TV, rail services equipment and alternative telecommunications services.
Syntaxis seeks to exclusively negotiate mezzanine investments involving subordinated loans with associated equity upside, typically in the form of warrants, direct equity investment, or both.
Ben Edwards, managing partner (pictured), says: ‘We’re absolutely delighted that the EBRD will continue to be a substantial investor in our second fund and we view this commitment as an endorsement of Syntaxis’ successful investment approach. As one of the most experienced investors in the region, their approval is a confirmation that the mezzanine market in Central Europe continues to present attractive investment opportunities with compelling risk-return characteristics. We expect demand for mezzanine to be strong in the years ahead, in part because of the contraction of term credit in the region, but primarily because our economies are growing at multiples of those of their western EU neighbours, and at the company level, good businesses in our region will continue to need finance, for expansion and for acquisitions."
