Praesidian Capital, a US provider of mezzanine debt to the middle market, has closed its second fund on $236 million (€170 million).
The fund close comes just as demand for mezzanine financing is widely expected to increase: As the market for second lien debt has largely dried up and senior debt has become more expensive, investors are beginning to turn their attention to mezzanine as an alternative.
Praesidian began fundraising in March and exceeded the fund's original target of $225 million. It will invest in “established, historically profitable” middle market companies with revenues of between $15 million and $150 million.
The fund’s limited partners include both new and returning and new investors. Investors in Praesidian’s first fund, closed on $156 million in February 2005, included Banc of America Capital Access Funds, The Lincoln National Life Insurance Company and Citicorp Venture Capital. Citibank Community Development, JP Morgan Chase, MBNA America and North Fork Bank also committed capital.
This April Praesidian provided senior debt financing in support of Palladian Capital Partners’ and NTP Management’s equity investment in National Truck Protection Company. The firm also provided $6.5 million in mezzanine financing this February for Cordova, Smart & Williams’ and Waterview Investors’ February acquisition of Eateries, a company that runs casual dining chains Garfield’s, Garcia’s and Pepperoni Grill.