Paris-headquartered fund manager Capza has held a first close of its fifth hybrid debt and equity vehicle at €450 million.
The Capza 5 Flex Equity fund has a €500 million target and has already exceeded the €350 million raised for its predecessor fund. The fund has up to one year to reach a final close and is aiming to complete fundraising in Q1 2021.
The LPs in the fund are a mix of institutions, including asset managers, insurers and family offices. Most of these institutions are based in France.
Flex Equity provides finance solutions which combine majority and minority equity, convertible bonds and mezzanine debt to support companies in their development. It targets the lower midcap segment across France, Spain, Germany and Italy. Typical target companies have EBITDA of between €3 million and €10 million.
The vehicle has an eight-year maturity, with clauses to extend subject to approval of the advisory committee.
Maxence Radix, co-head of Flex Equity France at Capza, said: “We are confident in the future of this new fund, all the more so since our hybrid model enables us to be especially agile and to invest in capital and/or mezzanine at a time when financing is likely to be more constrained and when entrepreneurs will need our support more than ever.”