Mezzanis is Crédit Agricole Private Equity's activity that specialises in mezzanine financing.

First launched in 2002, the mezzanine business invests mainly in unlisted mid-market companies with high potential and an enterprise value of less than EUR300 million.

Investment policy

 

Mezzanis provides mezzanine and quasi-equity financing for all business sectors in France and Europe. It covers all types of deal including leveraged buy-outs (LBOs) in partnership with financial investors and management, recapitalizations, capital restructurings and financing for internal or external growth. The typical deal size is between EUR5 and 15 million but Mezzanis can invest as high as EUR30 million either alone or in consortium.

 

Mezzanis continues to pursue its strategy of quality over quantity and performance over volume in a highly competitive environment where the number of players is growing, deal size is getting bigger and execution faster. We take a controlled approach to risk by carrying out a comprehensive analysis of proposals and seeking an adequate return for our risk. We are able to pursue this highly selective strategy thanks to a flourishing deal flow and, in turn, our selective approach is a guarantee of credibility and security for investors in Mezzanis.

Customized solutions

Mezzanis takes a medium to long-term partnership approach to its investee companies and its remuneration is therefore partly based on the value created by its investment. Mezzanis forges a close relationship with the management team. In this way, it can gain an in-depth understanding of the business and share the company's strategic vision in order to propose custom solutions to promote growth.

Mezzanine financing is mainly used in leveraged buyouts (LBOs/LBMOs or LBUs) carried out by financial investment funds or industrial players (corporate acquisitions). It can however also be used to provide financing for internal or external growth, to strengthen shareholders' equity ahead of an IPO, or to restructure a company's capital in preparation for a change in the shareholder structure or a buyout.

Midway between debt and equity, mezzanine financing often has a quasi-equity status, particularly relative to other senior debt. This is why investors providing mezzanine financing see their investment as a medium/long-term partnership with the management and shareholders of the financed company, and derive part of their remuneration from the additional value created by their investment.