CIC Mezzanine 4 closes on €300m hard-cap

Alice Tchernookova
14 December 2016

Tweet
Facebook
LinkedIn
Google plus
Send to

CM-CIC has closed its latest mezzanine fund, CIC Mezzanine 4, on its €300m hard-cap.

It is the fourth mezzanine fund launched by the GP over the last decade. With this new fundraise, the CM-CIC Private Debt entity has a total of €1.3bn in assets under management.

The fund, which exceeded its target by 25%, was launched earlier this year. The previous generation of the fund, CM-CIC Mezzanine 3, had gathered €180m in commitments in 2013 and is now fully deployed. Mezzanine 3 had also significantly exceeded its target, and was around 70% larger than the 2008 vintage Mezzanine 2, according to the GP.

Meanwhile, CM-CIC's private debt entity is also pursuing another fundraise – that of CM-CIC Debt Fund 2, a senior debt fund, which according to the GP has already gathered €300m in commitments. The €400m target should be reached early next year. The fund's previous generation, Debt Fund 1, was closed on €470m in 2014.

Investors
Similarly to the fund's previous generations, Mezzanine 4 received commitments from a mix of institutional investors, family offices, funds-of-funds and private backers.

Institutional investors represent the largest portion of investors, with around €200m committed. CM-CIC itself also contributed with around 10% of the final amount.

Investments
Maintaining a similar investment strategy to previous generations, CM-CIC Mezzanine 4 will mostly make mezzanine investments in French SMEs through buyout-type transactions, and will support companies' internal and external growth strategies.

The GP added it can also offer unitranche debt in cases where the company is at a later growth stage. Targeted businesses will typically have an EBITDA below the €25m mark, while tickets should range between €3-30m.

People
CM-CIC Private Debt – François Petit (president).