PineBridge Investments has raised more than $200 million for its second mezzanine fund, according to documents filed with the US Securities and Exchange Commission and a source with knowledge of the situation.
The fund will focus on providing junior capital, mezzanine debt and senior equity to mid-market companies in a variety of sectors, predominantly in the US, but including other developed markets.
PineBridge Structured Capital Partners II has received commitments from close to 20 investors, according to the filings and a source with knowledge of the fundraise. PineBridge Securities will receive a placement fee based on 1.5 percent of relevant sales, according to the filings. The target for the fund could not be determined at press time.
The firm’s structured capital arm focuses on mid-market companies in need of debt or growth capital, as well as businesses making add-on acquisitions and new buyouts. PineBridge has completed approximately $1.9 billion of non-control mezzanine debt investments in more than 80 companies since 2000, according to the firm’s website.
Mezzanine funds have continued to attract interest from limited partners in recent months, especially as traditional lenders to mid-market businesses such as banks and other financial institutions have scaled back lending.
In May, the Pennsylvania State Employees’ Retirement System committed $50 million to The Carlyle Group’s energy mezzanine opportunities fund, which is targeting $750 million, and in March, The Blackstone Group’s debt affiliate GSO Capital Partners closed its second mezzanine fund on $4 billion.
PineBridge is also in market with its debt-focused fund of funds, Pinebridge Credit Opportunity Portfolio II, which has raised $102 million, according to SEC documents. The firm’s $17.9 billion of private equity assets under management is split between $8.3 billion in direct investments, $5.3 billion in primary funds, $3 billion in co-investments and mezzanine debt, $1 billion in secondary funds and $500 million in “capital recovery” investments, according to its website.