Chart of the week: Subordinated and mezzanine funds are going global

Globally focused closed-ended subordinated and mezzanine funds have seen a 617 percent jump in capital between Q1 and Q3 2015 and the same period last year.

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Idinvest Partners’ Private Debt III fund sealed its latest deal with a €30 million mezzanine facility for Feuer Powertrain, the German crankshaft manufacturer, reported Private Debt Investor last week.

PDI’s Research & Analytics team have taken a closer look at closed-ended subordinated and mezzanine fundraising, comparing the capital raised between Q1 and Q3 2015 with the same period last year.

Those funds with a global focus, meaning that they invest into two or more regions, gathered $10 billion from investors in the first three quarters of 2015. Just $1.4 billion was raised across the same period last year.

This 617 percent leap was largely thanks to the close of Goldman Sachs’ $8 billion GS Mezzanine Partners VI. This was followed by Almanac Realty Investors, which collected a mere $1.26 billion for Almanac Realty Securities VII at final close in May.

Subordinated and mezzanine funds targeting the Middle East/Africa saw the largest fall. In 2014, the only vehicle focused on the region to hold a final close was Infrastructure Investment Programme for South Africa, which gathered $138.28 million. However, that was still one more than this year when no vehicles targeting the area held a final close.