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Park Square Capital Closes $1.2B Fund

Park Square Capital, a provider of leveraged buyout loans, has closed an 850 million euro ($1.21 billion) fund for mezzanine loan investments, Reuters reported. The fund, Park Square Capital II, comes from a mix of unnamed investors including sovereign wealth funds, pension funds and insurance companies.

(Reuters) – Park Square Capital, a provider of leveraged buyout loans, closed an 850 million euro ($1.21 billion) fund targeted at mezzanine loan investments, Park Square said in a statement on Tuesday.

The money raised for the fund, named Park Square Capital II, comes from investors in Europe, Asia and North America, with pension funds, insurance companies and sovereign wealth funds accounting for 80 percent of the capital commitments, Park Square said.

“We are delighted to have received a strong endorsement from the LP community in the midst of a challenging environment over the past couple of years,” said Robin Doumar, managing partner of Park Square.

Park Square said it can provide private equity firms with certainty of execution for mid-market and large buyout transactions. The new fund will generate returns from mezzanine loan investments in companies with leading market positions, stable and predictable cashflows and experienced management teams, it said.

Park Square Capital, which was established in 2004, has invested more than 2 billion euros in 34 mezzanine investments, more than 500 million euros in senior debt and approximately 500 million euros in special situations, it said.

In June last year Park Square, along with Apollo Management [APOLO.UL], Cerberus [CBS.UL] and York Capital Management took control of UK bingo operator Gala Coral by swapping 558 million pounds ($899.4 million) of mezzanine loans for equity in the company and injecting 200 million pounds of cash to repay senior ranking loans. ($1=.7050 Euro) ($1=.6204 Pound) (Reporting by Isabell Witt; Editing by Jon Loades-Carter)