Toronto-based TD Capital, the private equity arm of TD Bank Financial Group, has closed Canada’s largest mezzanine fund ever on C$500 million ($381 million; €308 million).
Fundraising began last May, and the majority of capital was committed by October, TD Capital Mezzanine Partners managing director and co-head Ian Kidson said. All of the fund’s investors are Canadian.
The new fund will have a primarily Canadian focus, and will invest in a broad range of companies. Kidson said the fund’s typical investments will range from C$26 million and C$98 million, with the ability to underwrite up to C$125 million, although TD Capital’s affiliation with TD Bank and the firm’s relationship with certain limited partners will allow the fund to underwrite even more.
Kidson said the fundraising success was due in part to his firm’s experience and relationship with TD Bank, which gives it access to a wide network and TD Bank securities.
TD Capital has been investing in mezzanine securities since 1995, and established a dedicated mezzanine arm in 2000. Since that time, the principals have successfully underwritten 12 mezzanine investments totaling more than C$575 million, with the bulk of these transactions being done on the TD Bank’s book.
Kidson said the new fund will close two deals in the next two weeks.