SWEN Capital Partners, a leading player in non-listed responsible investment, announces the final closing of the third vintage of its mezzanine debt fund range, SWEN Mezz Flex 3. Launched at the end of 2022, the fund has raised almost €112 million, 20% more than the previous vintage. It is aiming for 20 holdings, and has already made twelve investments, as well as one successful divestment. The FPCI [Fonds professionnel de Capital Investissement], classified as an Article 8 fund under the SFDR regulations, is reserved for professional or similar investors with a minimum subscription commitment of €1 million.

Diversified investments in small and midcaps 

SWEN Mezz Flex 3 stands out for its small and midcap positioning in France (>50%). Its hybrid approach (mezzanine + equity) provides management and companies with a financing structure tailored to their needs. The fund’s subscribers include more than a dozen institutional clients, both new investors and regular members of the range.

With over €200 million invested in some 50 transactions, SWEN Capital Partners has a long track record in mezzanine financing stretching back over 12 years.

SWEN Mezz Flex 3 saw a particularly dynamic deal flow, thanks in particular to its positioning in all types of deals (notably LBOs, sponsorless, mezzanine development, etc.) and its diversification strategy.

The fund invests directly in 3 growth areas: production and services for tomorrow, health and well-being, and tech (data/software). Targeted companies are small and medium-sized enterprises (SMEs), with investment volumes ranging from €5 to €10 million.

12 investments have already been made, notably to support the international expansion of Agora Makers (European leader in the design and manufacture of street lighting and street furniture solutions), the growth of Alpha Group (a key player in the roof waterproofing business), and that of Mitem Pharma, specialized in drugs of major therapeutic interest.

An approach to private debt that puts sustainable finance at the heart of financing 

Classified as Article 8 under SFDR regulations, this fund, like all SWEN CP products, benefits from the ESG expertise developed over more than 10 years. The 10-strong Sustainable Finance team, led by Renaud Serre-Lapergue and Julie Olivier, supports the mezzanine debt team in assessing assets for sustainability issues, identifying areas for improvement and monitoring performance indicators.

The vehicle is subject to strict financing criteria, and although it does not aim to be a sustainable investment, it does set itself a minimum target of 10% of sustainable1 investments with an environmental objective.

In the same vein, since the fund’s launch in 2022, most holdings have incorporated “ESG margin ratchets”, a mechanism that adjusts interest rates according to the fulfillment of ESG criteria.