Eurazeo and Axa to invest €380m in Capzanine funds

José Rojo
21 October 2015

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Listed GP Eurazeo and insurer Axa France have each acquired a 22% stake in mezzanine house Capzanine and announced plans to back two of its upcoming funds with a joint €380m contribution.

Founded in 2004, Capzanine is an SME-focused investor that splits its activity between equity injections and mezzanine or unitranche financing. The firm claims to have backed more than 70 businesses since inception and manages €1.1bn in assets via its three existing funds and an additional mandate.

With Eurazeo and Axa as new shareholders, Capzanine's portfolio looks set to expand considerably with the planned launch of two funds in 2016. The first, a €300m vehicle that will provide equity or debt to companies below the €10m EBITDA mark, will receive a €100m joint commitment from Eurazeo and Axa.

Meanwhile, the second, which will support >€10m EBITDA businesses with a total of €750-800m in mezzanine and unitranche financing, will be bolstered by €280m from Capzanine's new backers.

Speaking to unquote", Eurazeo managing director Frans Tieleman explained the relationship between Capzanine and its two new backers was initiated by Christophe Karvelis, managing partner at Capzanine.

Karvelis, who sits in the executive board of the Eurazeo PME investment arm, approached the listed GP to discuss Capzanine's search for external backers to support its growth plans.

According to Tieleman, Eurazeo's interest in stepping in as shareholder lies with Capzanine's focus on mezzanine financing, a segment so far absent in the GP's offer.

In return, Capzanine stands to benefit from Eurazeo's international presence; the jump abroad would be significant for a player which, according to unquote" data, has concentrated 95.38% of its activity in France.

For years, a consolidation trend has been observed among the country's PE houses such as Siparex and XAnge, which merged when the former bought out the latter in May 2015.

The move came on the back of a string of acquisitions by ACG Private Equity, which picked up Viveris Management, Gimar Capital Investissement, Acto Mezzanine and Quartilium between 2011 and 2013.