Nordic Mezzanine has held a first closing at €150 million for its second fund. The vehicle, launched towards the end of last year, has a total target of €200 million- double the size of Nordic Mezzanine Fund I. A final closing is anticipated in the summer.
;The investor appetite for a mezzanine fund with a proven track record has been strong in spite of a generally difficult fundraising climate, and there are now investment decisions in place beyond the first closing amount,” says Vesa Suurmunne, chief executive of Nordic Mezzanine. Commitments have so far come from the firm’s existing investors, which include Nordic pension funds, and new investors.
Like its predecessor, the fund will be invested in mid-market buyouts and expansion capital opportunities in the Nordic region and Germany. Last year the firm provided mezzanine for deals including the buyout of Frigoscandia Distribution, a provider of temperature controlled logistics services, by Nordic private equity firm, Triton. Other investments include Dometic, the EQT-backed buyout of Electrolux’s caravan and motorhome equipment division.
Nordic Mezzanine is based in Helsinki and London. The management team is supported by a board of advisers chaired by Lars Eskesen, the former deputy chairman of Unibank, the second largest bank in Denmark. This closing of the new fund brings Nordic Mezzanine’s total assets under management to €250 million.
Increased interest in the mezzanine market has been seen across Europe and competition is hotting up in the Nordic region too. Swedish bank SEB is active in the mezzanine market, as is CapMan, through its Finnmezzanine group of funds. EQT is also reported to be raising its first offering in this area.