Capzanine closes Capzanine 4 on €350m hard-cap

The GP's previous fund, Capzanine 3, also hit its €350m hard-cap in 2013, after more than a year on the road. Around 90% of Capzanine 3 has now been deployed.

It is the sixth fund raised by Capzanine since inception. In addition to Capzanine 4, the firm is raising a mid-cap unitranche vehicle, Capzanine 4 Private Debt, for which the GP is targeting €700-800m of commitments and expects a first closing in the next few weeks. Additionally, it is also raising Artemid 2, a corporate loan fund co-owned with Amiral Gestion.

Capzanine has taken part in eight financing transactions so far this year. The firm has been expanding into Spain since 2015.

Investors
Eurazeo and Axa France, which each acquired 22% of Capzanine in 2015, and had committed to a joint investment of €380m in the two fundraisings to follow, have consequently invested in the fund. Eurazeo contributed around €70m, complemented by €30m from Axa.

Contributions from insurance groups make up 50% of the collected funds, with the remainder coming from institutional investors (30%) and from private investors (20%). Around 40% of the total amount raised comes from foreign investors.

Investments
Targeting mostly France-based SMEs with a turnover up to €150m, Capzanine will provide a mix of equity and private mezzanine debt. Similarly to fund 3, fund 4 will aim to support entrepreneurs with flexible balance sheet financing, and give owners and managers the opportunity to benefit from a slightly dilutive financing, enabling them to maintain their independence.

As an equity provider, Capzanine will take either majority or minority stakes in target businesses. For mezzanine deals, the GP will mostly act in sponsorless transactions.

Similarly to fund 3, the new fund aims to complete 20-25 investments over a five-year investment period. Around 70-75% of the capital should be deployed as mezzanine, with the remainder being equity investments.

People
Capzanine – Christophe Karvelis (founder, president).

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