Europa Capital mezzanine debt fund approaches final close

Europa Capital Partners is approaching a final close on its UK-focused Europa Capital Mezzanine (ECM) Limited debt fund.

Europa Capital Partners is approaching a final close on its UK-focused Europa Capital Mezzanine (ECM) Limited debt fund.

The fund was launched back in November of 2012 when Michael Birch, chief executive of the ECM Investment Committee and head of the firm’s debt business, noted that “falling values and lower loan-to-value senior loans” provided the right market conditions for mezzanine.

Screenshot 2015-09-28 at 5.25.13 PMIn May 2014 the company arranged a £43m mezzanine loan on behalf of the Korean Teachers’ Credit Union (KTCU) to Patrizia and Oaktree Capital Management, but it was not clear if the investment was made out of the fund and fundraising targets and additional investments out of the fund have seldom been disclosed.

Europa has also launched its fifth pan-European value-focused fund targeting circa €750m in equity commitments, and the firm concurrently announced today that Europa has hired Schalk Visser as partner and head of Equity Capital Markets, responsible for expanding Europa’s institutional relationships globally.

The real estate fund management group seeks to add value through “risk-based acquisition strategies and active asset management on behalf of its investors,” targeting the repositioning of assets, loan restructurings and recapitalizations of assets and loans, among other strategies.

The predecessor fund – Europa Fund IV – had a final close on €604 million in July last year. The firm first hit the fundraising trail with Fund IV in early 2012 with a €750 million target, before holding a first close of around €200 million in October of that year. Fund IV is nearing the end of its investment phase and has so far made 15 investments in eight European countries.

Schalk previously worked as managing director at AEW Europe and was a member of its executive committee.  Prior to this, he was a senior director at CBRE Global Investors in London. He began his career in 1994, starting out at various investment banks including ABSA Capital and Rand Merchant Bank in South Africa.

Since 1995, Europa Capital’s Principals have raised seven real estate funds and committed to over 90 transactions totalling some €9.0bn across 18 European countries.

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