Accueil » News » Mezzanine debt fund SWEN Mezz Flex 3 hits the €100m mark
SWEN Capital Partners, a leading player in the field of responsible private equity investment, continues to strengthen its mezzanine debt activity with the third vintage of SWEN Mezz Flex 3, its fund range dedicated to this asset class. Launched at end 2022, the fund has already raised close to €100m, i.e. two-thirds of its €150m total target. The management team has also announced its sale in early 2024 of the Orès group, an independent communications agency. The vehicle, an FPCI1 classified as Article 8 under SFDR, is reserved for professional or similar investors with a minimum subscription commitment of €1m.
Investing in promising themes
SWEN Mezz Flex 3 continues to raise funds and expand. To date, the fund has already made eight investments totaling €50 million, 30% of its target size.
With over a hundred professional clients and a unique ecosystem, SWEN Mezz Flex 3 supports the growth of small and midcap firms in France (>50%) and the rest of Europe. Its hybrid approach (mezzanine + equity) provides management teams with a financing structure tailored to their needs, against a macroeconomic backdrop of tightening interest rates and tighter senior financing conditions from traditional banks.
With more than €150 million invested in some forty transactions, SWEN Capital Partners boasts a track record spanning more than 10 years in mezzanine financing. The management team has also been strengthened with the recruitment of Edouard Boukari as Senior Associate in March 2024, and now consists of five employees, headed by Diego Felipe Aponte.
The fund invests directly in three particularly buoyant areas: the production and services of tomorrow, well-being and health, and tech (data/software). Target companies are SMEs with market value between €10 million and €100 million, with a ticket size between €5 million and €10 million. Eight investments have already been made. These include Afitexinov, a French leader in the geosynthetics market, Eklo, a young French brand of eco-friendly hotels, and the Redpill group, a consultancy specialized in the transformation of marketing and communication activities. Two further deals will be announced shortly.
ESG as our compass
Classified as Article 8 under SFDR, this fund, like all SWEN CP products, benefits from more than a decade’s worth of ESG analysis expertise. The 10-person strong ESG team, supports the mezzanine debt team in assessing assets on sustainability issues, identifying areas for improvement and monitoring performance indicators.The vehicle is subject to strict financing criteria, including a minimum target of 10% sustainable investments2, whose positive environmental impact is measured by their Net Environmental Contribution (NEC) score.
A successful first exit
In Q1 2024, the fund announced the sale of its first investment, in the Orès group, a leader in the creation and production of premium digital content, as part of an early repayment following a new equity transaction in the company.
[1] Fonds Professionnel de Capital Investissement, a French alternative investment fund reserved for professional investors
We are delighted with the momentum of our fund in the current environment, thanks to the support of our investors and the expertise of SWEN CP’s mezzanine and ESG team. Our team benefits from a solid deal flow, mainly in the small cap segment, less targeted by mezzanine debt players.
Diego APONTE VARGAS
Managing Director of the Mezzanine Debt activity at SWEN Capital Partners
