Fund commitment - Beechbrook Mezzanine II
1 July 2014
Connection Capital is delighted to announce the completion of a commitment, on behalf of its clients, to the second fund from specialist direct lender, Beechbrook Capital. The Fund which was only available to institutional investors held its final close in July 2014.
- Investment date: July 2014
- Commitment size: undisclosed
- Number of investors: 40+
- Legal advisers to Connection Capital: Gateley
Clients of Connection Capital were provided with the unique opportunity to commit capital to the fund, alongside 13 institutional investors.
Beechbrook Mezzanine II is the second fund from Beechbrook Capital, a provider of secured mezzanine loans and small equity co-investments in European private equity-backed companies, with typical enterprise values of between €10m and €100m.
The fund held a final close at €151 million, exceeding its original target of €120m in order to meet investor demand. A total of 14 investors committed to this fund including Connection Capital whose clients invested via a single, fully managed syndicate.
Connection Capital clients were not only attracted to the relatively secure nature of a debt fund as a result of low leverage multiples but, also the attractive fixed returns that provide strong downside protection together with potential equity upside. Furthermore, the attractive running yield and fixed returns will allow the Fund to pay clients of Connection Capital a semi-annual cash distribution in due course. Clients also benefit from committing to a fund in its final closing which is already one third committed across seven investments.
In addition, clients of Connection Capital who invest in Fund II will have priority access to future co-investment opportunities presented by Beechbrook.
“Our participation in this fund demonstrates Connection Capital’s ability to source for its clients investment opportunities which are generally targeted at institutional investors only. Our clients have an appetite to invest in alternative assets which are too difficult or too expensive to access. Rather than operate a costly fund of funds model, we give our clients the opportunity to invest across a variety of fund types on a deal by deal basis.” - Claire Madden, Partner
If you are interested in receiving more information about future investment opportunities and are not yet a client of Connection Capital, please contact Steve Wilson.