Euro mezz back on the menu

Partners Group predicts the favourable characteristics of European mezzanine investments – high returns and low default rates – over the last 21 years will foster increased interest in the credit instrument. 

European mezzanine funds have delivered a total pooled investment return of 1.59x to investors over the last 21 years, according to a report produced by alternative asset manager Partners Group.

Together with surprisingly low default rates – just 1.8 percent of their invested capital was written off on an annualized basis – mezzanine is deserving of more attention from investors, Partners Group argues.