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Lehman Brothers closes European mezzanine fund with E750m

US investment bank Lehman Brothers has closed its European mezzanine fund with E750m of commitments, comfortably ahead of its original target of E500m.

Investors in the fund include over 30 institutions and high net worth individuals in Europe, the US, Asia and the Middle East. Lehman Brothers provided a cornerstone investment of E300m.

'The succesful raising of our first European mezzanine fund helps to address the shortfall in dedicated intermediate capital that is required to finance leveraged buy-outs in Europe,' said Julian Entwisle, a managing director of Lehman Brothers and principal of the fund.

'Our ability to attract E750m of equity capital, well ahead of our initial target of E500m, reflects Lehman Brothers' reputation as one of the premier global fixed income franchises, the quality of the investment team, and the investors' belief in our ability to originate quality investment opportunities and a superior risk-adjusted rate of return,' Entwisle added.

Lehman Brothers European Mezzanine Fund 2003 will target companies with enterprise values of over E400m. The fund has already invested around E200m in 12 transactions, including Halfords, the UK car parts group, Coral, the betting group, and Dignity, the funeral directors.

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