Nordic Mezzanine, the Finnish-based mezzanine provider focussing on the Nordic and German markets, looks set to continue the success of recent mezzanine fundraisings, holding a first close at E150m. Nordic Mezzanine Fund II, which will focus on mid-market buyouts and expansion capital primarily in the Nordic region but also in Germany, is targeting a final close in excess of E200m by mid-year 2003.
The fund is the follow-up to the E100m fund raised in 1999, which recently completed its first exit with Nordic Capital’s sale of Nycomed to CSFB Private Equity in October. Nordic Mezzanine underwrote E22m of the E115m mezzanine loan to finance part of the acquisition of Nycomed Pharma in May 1999. Fund I is expected to be fully invested within the next few weeks.
Fund II will look to make around ten and twelve investments of between E15m and E25m each. According to chief executive Vesa Suurmunne, the firm will focus on raising capital beyond the Nordic region prior to holding a final close in the summer. “The majority of the capital to date has been committed by Finnish, Norwegian and Danish financial institutions. We hope to raise capital from Britain and continental Europe before holding a final close in the summer.”
As with UK-based mezzanine firm Indigo Capital, which held a capped final close at E475m last week, Nordic Mezzanine plans to put a ceiling to the fund of E240m.“Investor appetite for a mezzanine fund with a proven track record has been strong in spite of a generally difficult fundraising climate,” added Suurmunne. “We already have existing dealflow, and expect to make investments in the near future.” The fund will be managed by Nordic Mezzanine UK and will be backed by the firm’s board of advisers chaired by Lars Eskesen.