Mezzanine Management Central Europe Ltd. (MMCE), the UK-based investment manager, announced the final closing of its second Central and East European mezzanine fund, Accession Mezzanine Capital II (AMC II), at 261 million euros.
MMCE said the fund was oversubscribed and larger than its AMC I fund which raised 115 million euros in 2003.
'Current conditions in the debt markets have meant that private equity firms are now seeking more flexible financing options which has, in turn, considerably increased the demand for mezzanine,' commented Franz Hoerhager, director of Mezzanine Management Central Europe.
AMC II has attracted existing institutional investors including the European Bank for Reconstruction and Development, MetLife Inc. and a subsidiary of CRG Partners Group LLC (formerly Raiffeisen Private Equity Management AG.).
In addition, AMC II has attracted commitments from a range of new
investors, including Caisse des Depots S.A., AXA Private Equity Ltd. and Bank of Scotland Plc.
Like its predecessor, AMC II will provide mezzanine capital to mid-market companies in the new EU member states including Poland, Hungary and the Czech and Slovak Republics, both alongside and independently of private equity houses. The second fund will also target investments in Ukraine and Russia.
MMCE has already made investments in seven companies from AMC II totaling 70 million euros in Poland, Hungary, Serbia, Bulgaria, Slovakia and Russia.
They include expansion capital for Euromedic International B.V., the Hungarian-based healthcare service provider majority owned by private equity firm Warburg Pincus LLC.
AMC II also refinanced the buy-out of Polish healthcare providers LuxMed and Medycyna Rodzinna.