Private Equity News & Analysis

Financial Risk Management seeds mezzanine fund

The seeding arm of the hedge fund of funds has provided a $75m anchor investment in London-based Beechbrook’s first ever vehicle.

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FRM Capital Advisors (FCA), a unit of hedge fund of funds Financial Risk Management focusing on early-stage fund managers, has provided the anchor investment in London-based Beechbrook Capital’s first ever fund.

FCA has invested $75 million in Beechbrook Mezzanine I, which Beechbrook launched in September and which will seek a second closing in 2009, according to a statement.

The investment is FCA’s second in three months and its first in Europe.

Beechbrook is seeking to take advantage of credit market dislocation with a European leveraged loan mezzanine fund. The firm was founded in May 2008 by former Mizuho Corporate Bank managers Paul Shea and Nick Fenn.

Fenn spent the last nine years at the Japanese investment bank, where he was head of syndications, mezzanine and a senior manager for the leveraged loan business.