Investment Funds

The Group currently advises, through limited partnerships, investment funds providing equity and mezzanine financings to a wide variety of middle market companies in the United States, Europe, the Middle East and North Africa. It also advises a European property opportunity fund, Capital Property II L.P. The U.S. fund, Bridge East Capital, L.P. was formed in March 1998. The Middle East and North Africa Direct Investment Fund, L.P. ("MENAVEST") in September 1998, Mount European Private Equity L.P. in June 2000, Mount Mezzanine S.A. in June 2004, Capital Property I L.P. in April 2001, Capital Property II L.P in December 2005 and EuroMena in March 2006.

Capital Property I and II

Mount European and Mount Mezzanine

Menavest and EuroMena

Bridge East Capital

Mount European and Mount Mezzanine

In 2000, Capital Trust Group formed Mount European Private Equity L.P., a private equity fund focussing on Europe. The fund is currently in the process of exiting its portfolio investments.

Following on from Mount European, Mount Mezzanine S.A. utilised the collective experience and institutional relationships of the Capital Trust Group to participate in the mezzanine tranche of top-tier Leveraged Buy Out transactions syndicated by Europe’s leading investment banks.

Mount Mezzanine primarily targeted investments in companies with enterprise values in excess of €800 million, and in which the mezzanine portion of the capital structure was at least €80 million. Smaller transactions were considered when they presented compelling opportunities and had a minimum enterprise value of €300 million with €30 million of mezzanine debt. The Fund also avoided sponsorless mezzanine and overly aggressive structures. This Fund is also in the process of realising its portfolio investments.

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Menavest and EuroMena

The Capital Trust Group was among the earliest institutional entrants to the Middle East and North Africa region, where it has made investments for its own account and carried out advisory work for its clients. Among its more notable investments was the co-founding of Lebanon Invest, Lebanon’s leading investment bank and capitalised at more than $40 million, as well as the Arab Palestinian Investment Company, which has capital in excess of $60 million. In 1996, the group placed and co-invested in Societé Des Grands Hotels Du Liban, owners of the five-star Phonenicia and Vendome Hotels in Beirut.

In September 1998, the Capital Trust Group formed MENAVEST, a $50 million private equity fund focussing on the emerging markets of Egypt, Morocco, Lebanon, Jordan, Syria, Tunisia, Oman, Yemen and the Palestinian Territories. The investments made by MENAVEST included recapitalisations, restructurings, IPO/privatisations, corporate joint ventures and expansion financing. The Fund is in the process of realising its portfolio investments.

The follow on fund from MENAVEST is EuroMena, which seeks investment opportunities in private companies operating in pre-identified growth sectors and industries and having the potential to expand from a country level onto a regional one within the MENA region. The Fund aims to achieve an emerging market level of return on a medium to long term basis from a combination of capital appreciation and current income through investment in select direct equity and equity related investments.

The fund's goal is to develop and consolidate promising sectors and industries in the following countries: Algeria, Egypt, Jordan, Lebanon, Morocco, Palestinian Territories, Syria, and Tunisia.

The Fund closed at $63 million in March 2006 and has signed a Memorandum of Understanding with Overseas Private Investment Company (OPIC) for a $50 million credit facility to be provided by OPIC to the fund, which would increase the total capital to $113 million.

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Capital Property I and Capital Property II

In April 2001, Capital Trust Group formed Capital Property L.P., a £30 million limited partnership focusing on investment in the property sector in Europe, with an emphasis on the United Kingdom. The fund was fully exited in 2005.
The follow on fund Capital Property II L.P. is a £28 million limited partnership with the same investment objectives as its predecessor. Capital Property II L.P. invests in direct property assets where it believes that it can add value and enhance returns. The Fund has created a diversified portfolio of income producing commercial real estate. The Fund is advised by Capital Trust Ltd., which makes recommendations to the General Partner with respect to Fund investments and dispositions.

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Bridge East Capital

In 1985, the Capital Trust Group formed its first private equity fund dedicated to investing in US private equity and mezzanine debt. The companies targeted were middle market companies with sales of $50 - $200 million and equity valuations of $20 - $100 million.

The Fund was formed by Capital Trust Group, together with the B.V. Investment Group, an international investment banking company with offices in Riyadh, London, Boston, Washington, D.C, Beirut, Dubai and Sanna. Affiliates of the General Partners of the Fund committed in excess of 25% of the Fund’s capital. The Fund is currently realising its investments.

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