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Tool of choice for the mid-market

Rory Brooks of Mezzanine Management on the significance of mezzanine as a financing tool.

In 1999, some commentators suggested that mezzanine might be in danger of falling behind. They could hardly have got it more wrong. Mezzanine today plays as important a role in European financial engineering as ever, having seen off with ease the challenge of high yield as an alternative source of financing.

Founded in 1988 by Rory Brooks and James Read, Mezzanine Management (MM) began as Europe’s first independent mezzanine investment house. To date, the firm has invested nearly $1bn of mezzanine and private equity capital in 54 companies across 10 countries.

Its latest fund, Mezzanine Management Fund III, has $528.8m of limited partner commitments to invest in buy-outs as well as junior capital solutions based on mezzanine and private equity.

Investors in the fund are institutional investors in North America, Europe, the Middle East and Asia. Operating on both sides of the Atlantic with offices in London, Paris, Frankfurt and Stamford, Connecticut, MM boasts an IRR of 34 per cent on its realised portfolio since 1988.