German lower mid-market lender Rantum Capital is eyeing a final close on its debut fund, Rantum Mittelstand Capital I, before the end of next June. The vehicle has a hard-cap of €200 million and reached a first close of €100 million in June.
The firm was established in 2013 and distinguishes itself from other lenders with its pool of advisors/investment principles who are former and current executives in well-known German corporates. The 13 advisors and industrial partners are also investors in the firm.
Frankfurt-based Rantum focuses exclusively on the German market and the advisors help source deals from outside the standard debt financing network. The firm also concentrates on sponsorless transactions for family-owned businesses.
It writes cheques of €2 million-€15 million but has the capability to lend up to €100 million with co-investment. A pension fund came into the fund as anchor investor. Ahead of launching the third party vehicle the firm executed five deals. Two of those transactions were subsequently moved into the commingled fund.
In September, Rantum executed its largest deal so far, a subordinated loan of more than €20 million for Natsu Foods. The German convenience food producer will use the deal to finance its acquisition of a sandwich-maker selling into the Dutch and Belgian markets.
The strategy is primarily mezzanine deals seeking mid-teen yields with a low double digit return target. It has the flexibility to do unitranche financings.
Rantum Capital is led by managing directors Mark Pahlow, previously at Carlyle, Dirk Notheis, former chief executive of Morgan Stanley Bank in Germany and head of the investment bank in Germany and Austria, and Carsten Olberding, previously director of mezzanine at Hamburg Savings Bank.