Northwestern Mutual Capital – Company Profile

Mezzanine financing company overview

Mezzanine firm logo:

Northwestern Mutual Capital - mezzanine financing company logo

Headquarters location:

United States

Typical mezzanine financing range:

Minimum investment of at least $5 million and the ability to commit up to $100 million

Geographic focus:

North America, Europe and Asia

Industry focus:

Industry agnostic

Company profile

At Northwestern Mutual Capital they are dedicated to making and meeting their commitments. This dedication has led private equity firms and corporations around the world to rely on them to provide the strategic funding necessary to support leveraged transactions and capital investments. Northwestern Mutual Capital manages more than $36 billion of assets for its clients across a portfolio of investment grade private placements, mezzanine and equity co-investments in private equity transactions and private equity funds.

Their $6.8 billion private equity portfolio is comprised of direct junior capital and limited partner investments. Over the last 10 years, they have invested over $7.4 billion alongside leading private equity sponsors in mezzanine, second lien, preferred and common equity, and other junior securities.

As investors in private equity since the 1970s, they have a long-term, strategic commitment to their sponsor partners and the asset class.

Northwestern Mutual Capital is the marketing name for the Private Securities department of Northwestern Mutual Investment Managment Company, LLC, a wholly-owned subsidiary of The Northwestern Mutual Life Insurance Company (Northwestern Mutual).

Northwestern Mutual Capital team overview

Their team is composed of experienced and dedicated professionals who take pride in the high standard of service they provide, the strength of their relationships, and the clients they represent. Their team has worked together across varying market cycles, and their experience across industries and asset classes helps the firm be responsive to their partners.

Investment philosophy/criteria

Northwestern Mutual Capital mezzanine investments

Northwestern Mutual Capital invests for its clients in junior capital in leveraged buyouts alongside leading private equity firms in the United States, Europe and Asia. They are experienced equity and mezzanine investors with over 40 years of experience investing for clients in these markets. Over the past ten years, they have invested over $7.4 billion in mezzanine, preferred and common equity securities alongside more than 80 equity sponsors. As of September 30, 2014, Northwestern Mutual’s mezzanine and equity co-invest portfolio had a market value of $3.9 billion (excluding their private equity fund investments).

As a committed investor in the private mezzanine and equity markets, they will seek to invest approximately $500-$750 million annually, with a minimum investment of at least $5 million and the ability to commit up to $100 million in any single transaction. Their team of professionals is focused on providing:

  • Flexible, strategic capital to support equity sponsors, with structuring flexibility (cash pay, PIK; mezzanine, preferred or common equity)
  • Competitive, market-level returns, based on transaction-specific risk/reward profile

Their experienced team of professionals can quickly assess the merits of a transaction, provide timely feedback and make substantial capital commitments when appropriate. They welcome the opportunity to work with new equity sponsors and continue their existing long-term relationships with others.

Northwestern Mutual Capital private equity funds

Northwestern Mutual Capital has invested in private equity funds for its clients for over 30 years, developing numerous long-term relationships with leaders of the private equity industry. They are an active investor in private equity funds across the globe, with most of their investments focused in North America and Western Europe. As of September 30, 2014, Northwestern Mutual Capital’s private equity fund portfolio totaled $3.0 billion with an additional $1.5 billion in unfunded commitments. Approximately 90% of their portfolio is focused on leveraged buyout funds, with the balance invested in select mezzanine debt, venture capital, distressed debt and power/energy/infrastructure funds.

Northwestern Mutual Capital is committed to being a significant and consistent investor in private equity funds. They seek to back fund sponsors with superior realized investment returns and sustainable and differentiated investment strategies.

Another clear differentiating factor in fund selection is the opportunity to develop a mutually beneficial co-investment relationship with a fund sponsor. Northwestern Mutual Capital’s direct investment team has a proven ability to execute mezzanine, senior equity and equity co-investments with speed, size and flexibility.

Their dedicated fund investment team welcomes the opportunity to meet with private equity fund managers seeking capital.

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