Mezzanine

Mezzanine is a source of long-term financing mainly used in leveraged buyouts. Considered as a hybrid and flexible product subordinated to senior debt, mezzanine allows to increase the leverage of LBO while saving the borrowing and capital expenditures capacity of a company and maximizing investors’ return on investment.

AXA Private Equity launched an initial Mezzanine program in 2005 amounting to €720M to invest throughout Europe. Today AXA Private Equity Mezzanine has over €2bn under management with a broader scope including Western Europe but also Eastern Europe, the USA and Asia.

Approach

• Direct Mezzanine investment as lead, arranger, co-arranger or participant.
• Partnerships with other Mezzanine Funds to promote co-investment opportunities and increase the regional diversification of our portfolios.
• Strategy to assist Buyout Funds in managing their investment, particularly in build-up strategies.

Criteria

• Mezzanine investments of €5M to €80M in direct investments, with capacity to arrange transactions up to €200M for the Mezzanine tranche.
• Direct investment and arrangement of Mezzanine tranches with or without warrant for all types of transactions including LBO, LBI, OBO, build up, equity restructuring, recapitalisation etc.