ICG closes Europe’s largest mezz fund

New investors have signed up for ICG’s new mid-market mezzanine fund, which will have cash resources of up to €1.5bn.

Intermediate Capital Group (ICG), the listed UK-based provider of mezzanine finance, has closed its new mezzanine fund on €668 million ($825 million).

With gearing, the company anticipates ICG Mezzanine Fund 2003 will have resources of up to €1.5 billion available, more than three times the size of its previous mezzanine fund.

Twenty-nine investors have committed to the fund, with more than half of them being new investors to ICG. Subscribers include banks, pension funds, insurance companies and funds of funds from Europe, the US and Asia.

Speaking to PrivateEquityOnline, managing director Tom Bartlam said that despite the increased size of the new fund, there would be no dramatic change of strategy for ICG.

“We will continue to cover the mezzanine marketplace from mid-market to top level deals. The only change is that we will now be better able to do the bigger deals,' he said.

Recognising there was more mezzanine money and competition in the marketplace than a year ago, Bartlam also pointed to the more varied and aggressive strategies being used in mezzanine transactions including warrantless deals and increased leverage in some transactions.

Since its formation in 1989, ICG has participated in 200-plus deals, arranging more than €4 billion of mezzanine. It currently has a team of 31 professionals across Europe.