News

New York Life Capital Partners has held a final closing of its third mezzanine fund, NYLCAP Mezzanine Partners III, on March 30, 2012, with total commitments of $980 million, more than a 20 percent increase than its predecessor fund. “We are very grateful for the show of support we received from investors and are confident that our strategy of investing in the middle market, with longstanding sponsor relationships, will continue to deliver strong results” said Thomas Haubenstricker, CEO of New York Life Capital Partners.

The new fund will continue NYLCAP’s strategy of partnering with private equity groups by providing mezzanine financing to support their acquisition of middle market companies in the U.S. and Western Europe. To date, the fund has invested $235 million in 10 portfolio companies.

Investors in the new fund include public and private pension funds, financial institutions, insurance companies, family offices, select individuals and sovereign pools of capital. “Historically, investors in this asset class have been large financial institutions and insurance companies, however in this fundraising effort, we have seen an increased interest among new types of investors seeking attractive yields and consistent downside protection,” said Mr. Haubenstricker.

New York Life Capital Partners manages $8 billion of private equity assets, including direct equity, direct mezzanine, and limited partnership investments. New York Life Capital Partners raised its first mezzanine fund in 2002, and the existing team has invested $1.9 billion in 90 mezzanine transactions. As an affiliate of New York Life Investments, NYLCAP manages alternative assets for New York Life Insurance Company, its affiliates and other institutional investors. NYLCAP, together with its predecessor organizations, began investing in private equity partnerships in 1984 and has been an active, direct private equity investor since 1991. The firm is based in New York, NY (www.nylim.com).

AUA Private Equity Partners has been launched in New York as an operationally-focused, lower middle-market private equity firm. The new firm is led by Andy Unanue, former COO and current shareholder of Goya Foods. Mr. Unanue is partnering with the former principals of Gotham Private Equity Partners, who have integrated their operations into AUA Equity. Joining Mr. Unanue as founding partners in AUA Equity are Steven Flyer, David Benyaminy and Kyce Chihi.

AUA Private Equity Partners makes equity investments in companies in the consumer, media and business services sectors with a particular focus on Hispanic-oriented companies and family-owned businesses located in the United States. The new firm plans to invest $10 to $30 million of equity in companies that generate $3 million to $15 million in EBITDA. AUA Equity will make control and significant minority investments in a variety of transactions and structures including: traditional leveraged buyouts; growth equity; recapitalizations; and roll-up strategies. Since 1997, AUA Equity’s principals have made over 25 private equity investments which include: Reddy Ice Group, El Pollo Loco, TRUFOODS, Two-Twenty Records Management and Brighter Dental Care. The firm is based in New York, NY (www.auaequity.com).

“I am extremely pleased to be establishing AUA Equity with an outstanding team of private equity professionals and operating executives,” said Managing Partner Andy Unanue. “We have been working together for many years and I believe our combination of operational expertise and private equity experience uniquely positions us to identify compelling investment opportunities, especially in Hispanic-oriented companies and family-owned businesses, and create additional value in our portfolio companies.”

Messrs. Benyaminy and Flyer began their investment careers in CIBC’s Leveraged Finance and Merchant Banking Group and then helped establish Trimaran Capital Partners, a $1.0 billion private equity fund.

Mr. Chihi previously worked in Deutsche Bank’s Leveraged Finance Group and as an investor at an international family office.

Denham Capital Management has held a closing on its sixth fund, Denham Commodity Partners Fund VI LP. Launched in July 2011 and closed eight months later in March 2012, Denham Capital raised $3 billion in total third-party commitments for Fund VI from a variety of institutional investors. Fund VI was oversubscribed, exceeding the targeted amount of $2.5 billion.

Denham received support from investors in its prior fund, with nearly 90 percent of commitments participating in Fund VI. Denham also added new limited partners from the public sector within the U.S. as well as from Europe and Asia.

Latham & Watkins served as the fund’s legal counsel and Park Hill Group acted as placement agent.

“We are very pleased to have completed the Fund VI raise in what remains a challenging global fundraising environment,” said Stu Porter, Chief Executive Officer of Denham Capital. “Thanks to very strong relationships with our limited partners, who share our belief that investment opportunities will continue to be robust around the sustained global demand for energy and resources products and services, we are able to quickly return our undivided attention to capitalizing on opportunities in these sectors. We are grateful for the support of our existing and new limited partners.” As with prior funds, Fund VI will invest in the energy and resources sectors worldwide, and applying Denham’s operational and commercial expertise and risk management strategies to create value in those investment opportunities.

The fund will invest in companies and assets in the oil and gas, metals and minerals and power and renewables sectors. To date, Fund VI has made investments in Cascade Petroleum, a Rockies-focused E&P company; Ursa Resources II, a follow-on venture with the Ursa Resources team, which Denham Capital backed previously; Fotowatio Renewable Ventures, a global solar power developer; Tremont Holdings, a partnership with Pangea Exploration to develop mining projects across Africa; and Stellar Mining, a Peruvian mining venture.

The closing of Fund VI brings the amount of invested and committed capital under Denham Capital’s management to approximately $7.3 billion. Denham typically targets investments in the $50 million to $250 million range. The firm has offices in Boston, MA; Houston, TX; Short Hills, NJ and London, UK (www.denhamcapital.com).

GSO Capital Partners, the credit division of Blackstone, has held a final closing of its second mezzanine fund, GSO Capital Opportunities Fund II, with total commitments of $4 billion. GSO will invest the fund across a range of sectors and geographies, with a particular focus on the U.S. and Europe.

Thus far, the new fund has invested or committed $780 million in four companies, including providing financing to Sony Corp. for its acquisition of EMI Group’s publishing unit and a preferred equity investment in a subsidiary of Chesapeake Energy created to help fund development of the Utica oil and natural gas field.

“We appreciate this extraordinary vote of confidence from our investors. We look forward to seeking opportunities to invest this capital in world-class companies while continuing our consistent track record for our limited partners and their constituents,” said Bennett Goodman, Senior Managing Director and Co-founder of GSO.

GSO Capital Partners is the global credit platform of Blackstone. GSO, together with its affiliates, has approximately $46 billion of assets under management making it one of the largest credit-oriented alternative managers in the world and a major participant in the leveraged finance marketplace. The firm is based in New York, NY (www.blackstone.com).

Blackstone is an investment and advisory firms with total fee-earning assets under management of over $90 billion. Blackstone’s alternative asset management businesses include the management of corporate private equity funds, real estate funds, hedge funds, funds of funds, debt funds, collateralized loan obligation vehicles and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement service. The firm is located in New York, NY (www.blackstone.com).