Accession Mezz hits EUR261m in final close

01 May 2008

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Fund

Mezzanine Management Central Europe has reached a final close of EUR261m for its latest fund, surpassing its EUR200m target and even its EUR250m hard-cap. Accession Mezzanine Capital II will provide mezzanine funding to new EU member states in Central and Eastern Europe and those on course to join, and has a limited capacity to invest in Ukraine and Russia. AMC will open a Kiev office later this year to assist in deal sourcing.

AMC II follows the firm's initial fund, which became CEE's first-ever fund exclusively dedicated to mezzanine when it closed on EUR115m in 2003. That fund made 19 investments totaling more than EUR200m and has made five successful realisations, including the highly lucrative sale of Bulgarian Telecommunications Company, which lead equity sponsor Advent International sold to Novator two years after the 2004 investment.

AMC II is structured as a 10-year English limited partnership. SJ Berwin provided legal advice.

Investors

Investors in the fund include existing backers European Bank for Reconstruction and Development, Metropolitan Life and Foreign & Colonial. New institutions that came on board include Caisse des Depots, AXA Private Equity and Bank of Scotland.

Investments

AMC II will invest in mid-market companies in new EU member states, countries on course to accede, and, to a limited extent, Ukraine and Russia. AMC II will invest between EUR8-25m per deal. The vehicle has the ability to act alongside an equity sponsor or to do deals without a buyout house.

10 investments have already been made from the fund, corresponding to around EUR90m.

Name: Accession Mezzanine Capital II

Final close: EUR261m

Contact: Franz Hoerhager

Chris Buckle

Address: Mezzanine Management Finanz- und Unternehmensberatung GmBH, Kohlmarkt 5/6, A-1010 Vienna, Austria

Tel: +43 1 532 8990

Advisers: SJ Berwin (Legal).