NEWS
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06/09/2023
Cerea Partners announces a record closing for its Cerea Mezzanine IV fund
Cerea Partners announces a record closing for its Cerea Mezzanine IV fund
At €300 million, the Cerea Mezzanine IV fund exceeds its predecessor by 50%, confirming investor interest in the 4th vintage of Cerea Partners' mezzanine funds.
Cerea Partners, a thematic investor driven by one ambition: "better nutrition, better production, better living", is proud to announce the closing of Cerea Mezzanine IV. The fund has reached a size of €300 million, a record raising for the strategy. This achievement underlines the attractiveness of the fund's investment strategy and the continuing confidence of investors in the expertise of Cerea Partners, which now manages almost €1.5 billion in assets.
A proven strategy
Cerea Partners’ thematic investment strategy in SMEs and VSEs in the food and beverage universe and adjacent sectors is centred on 3 pillars of sustainable development – “better nutrition, better production, better living” which are in line with buoyant underlying trendLaunched in 2004, the mezzanine strategy has a unique track record of almost 20 years of investment, with more than 70 investments representing €595 million invested over the years and 50 investments successfully exited. Since 2019, it has also incorporated a proprietary ESG rating tool, a key element in the investment committee’s decision-making and portfolio monitoring.
On the back of a successful fundraising, the Cerea Mezzanine IV fund has had a very active first year and has already made nine strategic investments, including four companies that Cerea Partners has been supporting for many years, a guarantee of its long-term partnership approach.
Among its investments, of note is the investment in Nutrimuscle, one of the leaders in France today and a French pioneer in sports nutrition on the D2C (direct to consumer) online sales market, for which Cerea Partners arranged and underwrote the unitranche financing. The company produces and distributes premium food supplements for sports nutrition and well-being and stands out from its competitors through its high level of transparency and CSR strategy.
Another example is Novepan, a producer of frozen bread, pizza dough and snack products, which received a ‘best in class’ ESG rating for its commitment to CSR. ‘’. For this deal, Cerea Mezzanine IV differentiated itself from its competitors by offering different types of financing. The team was agile enough to win the deal by proposing a unitranche bridge, which was subsequently refinanced and Cerea underwrote the entire mezzanine tranche.
A loyal and diversified investor base
Among the investors in the Cerea Mezzanine IV fund, Cerea Partners can count on most of the institutional investors from the previous vintage and/or who have positioned themselves in the management company’s other two strategies, proof of their attachment to the company’s DNA and philosophy. However, new profiles among the corporate players in the food & beverage universe, perfectly familiar with Cerea’s investment thesis, have positioned themselves in the fund, as have family offices. In addition, several members of the team also subscribed to the fund in the same way as the other subscribers, demonstrating a strong alignment of interests and a high level of confidence in the investment strategy on the part of the members of the management company. This diversity of investors demonstrates the recognition of Cerea Partners’ expertise and its ability to create value for its partners.
“Cerea Partners is delighted to announce the latest closing of the Cerea Mezzanine IV fund. We are delighted with the confidence of our existing and new investors, who have identified us as a key player in the market. At €300 million, we are renewing our commitment to supporting SMEs and mid-caps in their development and transfer projects and are proud to be contributing to their growth and success,” said Michel Chabanel, Partner - CEO.
“With this new vintage, we are confirming our determination to seek out strategic opportunities for our investors based on our 3 pillars. Our objective is clear: to create sustainable growth and continue to strengthen our partnership with the companies we support, for a prosperous future for the entire ecosystem,” says Fabrice VidalPartner - Deputy CEO - Private Debt.
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