Beechbook Capital, an London-based investment firm founded in May 2008, has received a commitment of US$75m to its mezzanine fund Beechbrook Mezzanine I.
The cornerstone investment was commited by FRM Capital Advisors (FCA), the hedge fund seeding business of Financial Risk Management.
Beechbrook will seek to raise further capital ahead of a second closing of the fund, scheduled for 2009.
Beechbrook Capital was founded by Paul Shea and Nick Fenn to manage and advise funds investing in leveraged finance assets.
“The current market conditions provide one of the most favourable investment opportunities the mezzanine debt industry has seen in many years. Working with FCA provides the basis to execute the strategy we have been developing,” said Shea.
Plugging the gap between senior debt and equity in the capital structure, mezzanine has enabled buyout firms to continue to do deals despite the contraction of debt packages offered by banks since the credit crunch in July 2007.
Since this time mezzanine finance has been in strong demand having been dismissed for the preceding two years as an outdated product thanks to elongated senior debt packages and the emergence of second lien.
Source: Thomson Merger News