ABN AMRO Mezzanine has announced the final closing of its second fund at GBP150 million target through LP commitments and co-investment arrangements. The Second ABN AMRO Mezzanine Partnership was launched in March 2000 with the aim of raising double the capital of the first fund, which closed at GBP75 million in 1998 and is now fully invested. An initial closing of GBP105 million was announced last November.
The average investment size of the first fund was GBP5 million and it had an underwriting capacity of up to GBP20 million. The increased size of the new fund will see this underwriting capacity rise to GBP30 million. The fund will also focus on financing solutions for development and expansion financings. Barrie Moore, managing director of ABN AMRO Mezzanine, said: “The second fund will continue to focus on mid-market mezzanine transactions, in both leveraged financings and development capital, with an investment range of GBP3 million to GBP30 million. Investments will be targeted at companies based in the UK and Western Europe.”
ABN AMRO, the Dutch bank that owns ABN AMRO Mezzanine, has committed around GBP50 million to the latest fund. Investors in the first fund have continued their participation and
are joined by new investors from the UK, Europe and North America. The bank’s mezzanine subsidiary was established in 1996. Most of its management team were previously responsible for NatWest Markets’ mezzanine investments.