GSC Partners, the American investment firm, has closed its second mega mezzanine fund for the European debt market. Launched in April last year, GSC European Mezzanine Fund II will continue in the same vein as its predecessor, investing in mid-market deals across the continent, led by vice chairman of GSC Partners and chairman of GSC Europe Richard M Hayden and senior managing director Christine K Vanden Beukel through the firm’s London office.
Over 20 new investors have committed to the new vehicle, which has also managed to retain a number of LPs from the previous fund, which closed in 2002. The first GSC European Mezzanine managed to raise a similar amount following its launch in April 2000, and closed on €765m of committed equity capital in October 2001 before signing an additional €300m credit facility to leverage the fund. It is fully invested.
Hayden says: “The mezzanine business in Europe has traditionally earned attractive, risk-adjusted returns, significantly higher than those for a commensurate amount of risk elsewhere in the world. Investors’ interest in this fund is a testament to the current attractiveness of the European mezzanine business, the strong performance of fund I, and their trust and confidence in GSC’s experienced team.”