(January 26 – 12:35 ET) – Royal Bank Equity Partners, the merchant banking arm of Royal Bank Financial Group, has committed $200 million to the creation of a new unit providing mezzanine financing to mid-market companies.
“The addition of mezzanine financing to our suite of products now makes it possible for Royal Bank Financial Group to service the entire liability side of a client’s balance sheet with a combination of senior debt, mezzanine financing or private equity,” says Philip Olsson, managing director of Royal Bank Equity Partners.
Peter Adamek, formerly with Royal Bank Capital Corporation, the venture capital arm of Royal Bank Financial Group, will head the new unit. “Our objective is to provide mid-size companies with an additional source of financing to support their growth strategies. We are looking to partner with Canadian and U.S. companies in a variety of situations and industry sectors. Our target investments will be in the $10 million to $40 million range with a horizon of three to seven years,” said Mr. Adamek.
With $200 million committed to mezzanine financing, Royal Bank Equity Partners enters a segment of the financial services market that, while well-developed in the U.S., still has significant growth potential in Canada, says Adamek. In addition to financing the growth and rapid expansion of mid-sized companies, the new unit will provide funds for management buy-outs of private companies and for acquisitions of non-core businesses of larger companies.
-IE Staff