Bregal Investments has secured a €400m capital commitment for Bregal Milestone’s maiden pan-European fund.
Bregal Milestone will focus on making debt and structured/minority equity investments in growing European mid-market businesses, taking non-control positions only.
The fund will target sectors including technology, healthcare, business services, consumer, high value manufacturing and specialty finance. Typical commitments could range from €20m to €60m.
The successful first close comes after Bregal launched a new €40m sustainable development fund last month.
Bregal Milestone is led by investors Jan Bruennler, Philippe Lautenberg and Cyrus Shey. Prior to launching the fund, Bruennler co-founded Makuria Investment Management and invested through Och-Ziff and Goldman Sachs.
Lautenberg and Shey were co-founders and heads of Credit Suisse’s European mid-market lending group. The pair previously held senior investment roles at Credit Suisse and Goldman Sachs respectively.
“We are pleased to partner with Jan, Philippe, Cyrus and their team in forming Bregal Milestone,” said Co-CEO at Bregal Investments, Steve Black.
“Their strategy of providing debt and non-control flexible capital to growth companies should continue to provide compelling risk-adjusted returns throughout market cycles and will be complimentary to Bregal’s current offerings.”
Commenting on the fund launch, Bruennler added: “In Bregal we found the ideal partner with a highly successful and differentiated track record backing entrepreneurial investment teams.
‘Their commitment to our fund enables us to accelerate our investment activity in partnership with the family and founder-led European businesses we focus on.’