EUROPE - Park Square Capital has raised €850m ($1.2bn), primarily from institutional investors including pension funds, for its mezzanine fund PSC Fund II, the firm said.
Park Square targets the larger end of the mezzanine market, and expects to put the capital to work over the next 10 years throughout Europe, said spokesman Paul Downes. The firm targets companies with strong market positions and predictable cash flows.
Officials at Park Square declined to provide details on potential returns, but similar mezzanine funds typically target returns of 11.5% - 12% above LIBOR.
Robin Doumar, managing partner of Park Square said: "We are delighted to have received a strong endorsement from the (limited partner) community in the midst of a challenging environment over the past couple of years. One of the lessons of the recent financial crisis is that there is an increasing requirement for well-capitalised, non-bank credit providers."
Some 80% of the capital raised came from pension funds, insurance companies and sovereign wealth funds from Europe, Asia and North America. However, fundraising began in late 2008, and the firm missed its initial fundraising target of €1bn.