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Mezz funds facing supply scramble

Mezzanine investors may receive a bigger slice of the action now that senior bank lenders are reining in their risk, but the supply of LBOs remains muted. Some fear that mezz investors will be tempted to sacrifice credit quality in the hunt for transactions. Kathryn Tully reports.

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SOME SAID 2001 WOULD BE THE YEAR OF Mezzanine debt, and until three months ago it looked as though they would be proved right. There are now about 20 major mezzanine providers in the European market with over e20 billion to spend, and the recent growth in CDO funds has added an important new dimension to the market. Recent transaction figures confirm that until recently the mezzanine market has

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