Lehman Brothers has completed fundraising for its first dedicated €750m ($904m) European mezzanine fund. It is the largest such fund raised exclusively for companies in the region.

The fund exceeded its original €500m target, illustrating strong investor demand for mezzanine products, despite a surge in supply. Lehman committed €150m to it in January 2002, but increased this to €300m at the beginning of last year. The balance came from more than 30 institutions and high net worth individuals.