Highbridge mezz fund reaches $4.1bn first close

The firm’s third mezzanine vehicle reveals progress towards its $5.5 billion target.  

Highbridge Principal Strategies (HPS) has raised $4.1 billion for its Mezzanine Partners III Fund, according to several SEC filings posted last Tuesday (24 May) and earlier in the year. The fund launched last year and is understood to have a target of $5.5 billion.

According to the filings, Mezzanine Partners III made its first sale in March and has secured commitments from more than 60 investors. Listed on the filings are chief executive officer Scott Kapnick, chief administrative officer Faith Rosenfeld, chief financial officer Paul Knollmeyer and general counsel Yoohyun Choi. Scot French oversees mezzanine strategies at the newly independent firm, which recently completed its management buyout from JPMorgan.

A Highbridge representative did not return calls seeking further comment by press time.

The fund's predecessor, Mezzanine Partners II, closed on more than $5 billion in 2013 and counted the Teachers Retirement System of Texas among its investors. Highbridge was still investing from the fund last June, when it worked with Partners Group to provide a $500 million facility to support the merger of Lightower Fiber Networks and Fibertech Networks.

Other large mezzanine managers in the US are also in the market with their latest funds. GSO's third Capital Opportunities Fund is marketing with a $6 billion target. It recently secured commitments from the Texas Municipal Retirement System and is expected to hold a first close soon.

Crescent Capital Group is fundraising for its seventh mezzanine fund that has a $3 billion target and is understood to be on track to exceed.