Cerea Partners has held a first close of its latest mezzanine vehicle at €215 million, equivalent to more than 85 percent of its target size.
The fund, Cerea Mezzanine IV, is targeting €250 million and has already raised more than Cerea Mezzanine III, which closed at €200 million in 2016. The Paris-based fund manager said it raised the capital from existing LPs but also added new French and European investors. Most investors in the round were institutions but also included several family offices.
Cerea said the fund will follow the same strategy as its predecessors, investing in French and European small and mid-cap companies involved in the food and beverage value chain.
It said LPs were keen to reinvest due to strong performance of previous vintages and a low loss rate over the past 15 years. It added that the resilience of the food and beverage sector was also attractive to investors.
Additionally, the firm has been evolving its ESG approach since 2010 and recently launched an ESG rating tool across all three of its strategies, stating that Cerea Mezzanine IV “has ambitious sustainability targets focused on such themes as healthy food, sustainable production and responsible sourcing”.