Beechbrook Capital holds second close of Fund II at & €110m and makes two new investments

16 June 2014 – Beechbrook Capital, a specialist direct lender, has held a second close on Beechbrook Mezzanine II at €110m, completed two new investments and strengthened its investment team with two new appointments.

The second close has seen two new investors join the fund and three of Beechbrook’s existing investors increase their commitments. The initial fund-raising target has been achieved, with a final close yet to come in late June and several further commitments expected. Beechbrook Mezzanine II now has eight institutional investors.

Beechbrook Mezzanine II has also recently completed two new investments:

• A mezzanine loan to support the buy-out of Gusto, a successful Italian-themed restaurant chain, by Palatine Private Equity and management.  Gusto, which is based in the north of England, is planning to open more restaurants across the UK over the next few years.
• A mezzanine loan to support the buy-out of Americana, owner of the clothing brand Bench, by Emeram Capital Partners.  Bench is known for its stylish but functional ladies’ and men’s designs primarily for consumers in the 20 to 30 age group, particularly in German, Canada and the UK.

Beechbrook has now made five investments from Fund II and expects to close two more in June.

Finally, the Beechbrook team has been strengthened by the recruitment of two new associates, David Deregowski, previously of Lincoln International, and Adam Moore, formerly with Ares.  Further appointments are planned for the second half of the year.

Beechbrook partner Nick Fenn said: “The direct lending opportunity in the lower mid-market remains very exciting.  We are seeing an increase in enquiries from potential borrowers, due to the continuing dearth of funding available to lower mid-market companies from banks and mainstream institutional lenders.  We are also seeing increasing interest from institutional investors looking for exposure to this part of the debt spectrum.  We are growing our team accordingly.”

Beechbrook currently has over €200 million of assets under management.