NY Life Capital Raising $1B Fund For Mezz

New York Life Capital Partners, the private equity arm of the insurance company, is halfway done raising its third mezzanine pool, a planned $1 billion fund, a person familiar with the activity told Buyouts.

New York Life Mezzanine Partners III would be a step up from its predecessor, which closed in 2007 with $800 million of commitments from 26 institutional investors, $200 million above the fund’s original target of $600 million, according to the firm’s Web site.

New York Life Capital began its mezzanine investment program in 1992 and raised its first dedicated fund in 2002, a $475 million fund, which included commitments from New York Life and 10 additional institutional investors, the site says. No regulatory paperwork had been filed on the new fund by deadline.

Pennsylvania Public School Employees’ Retirement System is the only known limited partner in New York Life Capital’s mezzanine program, according to the Thomson One database.

New York Life Capital’s mezzanine team typically invests in leveraged buyouts of mid-market companies in the United States and Europe. It invests across all industries and usually holds $15 to $50 million in any given deal, often involving warrants or equity and other mezzanine kickers.

Southridge Investment Group is working with New York Life Capital on the new fund, the person said.

A spokeswoman for the firm said she could not confirm the report.