European mezzanine funding activity holds up in Q1 2003

02 June 2003

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Following a significant increase in activity during the second half of 2002, Initiative Europeâ€™s Mezzanine Monitor indicates that the European mezzanine market continued to demonstrate good levels of activity in the first quarter of 2003, albeit clearly hindered by the overall slowdown in deal activity across Europe.In total, 11 deals with mezzanine financing have closed this year amounting to EUR 1.9bn, and comprising EUR 302m of mezzanine. The overall level of mezzanine activity in the first quarter has been buoyed significantly by two large deals in the Benelux region. Barclays Capital underwrote the mezzanine for the EUR 600m acquisition of Netherlands-based Kluwer Academic Publishing led by Cinven and Candover. Barclays also underwrote EUR 165m of mezzanine for the buyout of Ontex by Candover, the largest deal using mezzanine financing completed this quarter. On an aggregate France still represents the largest mezzanine market in Europe over the last 12 months with a 37.3% share in the 12 months to March 2003. The UK market share figures will undoubtedly improve following the recent Â£1.24bn buyout of Gala.