PMV launches €100m Belgian mezzanine fund

The fund has a target of €100m and already held its first close in February on €75m. A final close is expected to be held by year-end, but looks likely to happen in the next few months, according to Capital@rent managing partner Joris Claeys.

Mezzanine Partners 1 will be managed by Mezzanine Partners Management, which is a 50/50 joint venture between PMV and Capital@rent as managing partner and manager respectively. Partners from both parties will work for the new firm.

The fund has a 10-year lifespan with an investment period of three years (with a maximum of four).

The vehicle was created to fill the current gap in the Belgian mezzanine financing landscape. Prior to the financial crisis, large financial institutions primarily from London, Scandinavia and Paris supplied mezzanine to Belgian companies, according to the firms, but this has tapered off in recent years.

PMV and Capital@rent, which is part of the Claeys family holding company in Flanders, claim to be the only two non-bank lenders of mezzanine financing in the country and have often syndicated to provide subordinated loans of more than €5m to companies. For this reason the firms united to create a dedicated vehicle that can provide larger loans.

Any potential transactions that are worth more than €2.5m and are brought to either PMV or Capital@rent must be proposed to the joint fund. For financings valued under €2.5m, the two firms remain competitors.

Investors
PMV and Capital@rent are each investing €15m into the fund. ING Belgium is a strategic partner of the fund.

Investments
The fund will supply mezzanine loans of €2.5-15m to mature SMEs in the Belgian market. Its aim is to supply financing as part of acquisitions, buyouts, refinancings and expansion deals in the country.

Mezzanine Partners 1 plans on providing mezzanine financing to 15-20 companies over its three-year investment period.

People
Leo Claeys is the chairman of Capital@rent.

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• Topics
• Mezzanine
• Benelux
• Belgium