Beechbrook, halfway to third debt fund target, courts U.S. investors

  • Firm reaches $111 mln first close in about six months
  • For the first time, GPs will reach out to U.S. for LPs
  • Beechbrook maintains focus on northern Europe

Beechbrook Capital, halfway to its $222 million target for the Private Debt III fund, for the first time plans to court U.S. LPs to help reach the goal, a firm co-founder told Buyouts.

“We have plans to visit U.S. investors later this year,” Paul Shea said in an email. The London firm expects to reach a final close in 2017.

LPs in Private Debt III include European Investment Fund, British Business Bank Investments Ltd and other institutions, the firm said.

Beechbrook’s Private Debt Fund III reached the halfway mark on Aug. 3, with a first close at about $111 million, based on the Aug. 4 dollar-euro exchange rate. The firm kicked off fundraising for the pool in March.

Mezzanine and unitranche

Focused on lending $5.6 million to $16.7 million to finance buyouts by private equity firms, Fund III provides mezzanine and unitranche loans.

Beechbrook Capital is working with the same team it had in place for Private Debt II, which raised about $168 million and closed in 2014. Fund II reached the end of its investment period in May.

In one deal this year, Beechbrook’s Private Debt II completed its eighth full exit via Baird Capital’s sale of Alpha Financial Markets to PE buyer Dunedin. Beechbrook had issued a unitranche loan and equity co-investment for Baird’s 2013 buyout of Alpha.

Beechbrook Capital, co-founded in 2008 by Shea and Nick Fenn, also runs the UK SME Credit Fund, which provides debt capital to sponsorless private companies.

Action Item: Beechbrook: http://www.beechbrookcapital.com/contact

Light is beamed into the sky from Trafalgar Square in London to mark the 100th anniversary of the outbreak of World War I, on August 4, 2014. Photo courtesy Reuters/Paul Hackett