Mezzanine Funds

NYLCAP began its mezzanine investment program in 1992, and raised its first dedicated fund in 2002, a $475 million fund, which included commitments from New York Life and ten additional institutional investors.  NYLCAP is currently investing from its second mezzanine fund, an $800 million fund, which had a final closing in October 2007 with commitments from 26 institutional investors.

The mezzanine program invests primarily in privately placed, unrated, non-investment grade subordinated debt with warrants or equity and other mezzanine securities typically in conjunction with leveraged buyouts of middle market companies in the United States and Europe.  The mezzanine program targets sponsored transactions across all industry sectors and will usually hold $15 to $50 million in any given transaction.  As of June 30, 2007, NYLCAP has invested over $900 million in 60 mezzanine transactions.