Arcmont has closed its newest European direct lending fund with investable capital of €10bn (£8.55bn), making it one of many largest direct lending funds ever raised in Europe.
The Arcmont European Direct Lending Fund IV was initially focusing on between €8bn and €10bn.
So far, the fund has dedicated roughly 55 per cent of its capital. It follows a method of investing in a defensive, diversified portfolio of primarily first lien senior and unitranche loans, in addition to second lien and subordinated loans. The fund can even maintain fairness or warrant positions alongside these loans, the place acceptable.
Anthony Fobel, chief govt of Arcmont, stated that the fund’s success was because of the attractiveness of European non-public debt amongst traders, and hailed the potential of the sector within the present financial system.
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“Direct lending has an important position to play in offering financing throughout the European market,” Fobel stated.
“Throughout a time of macroeconomic uncertainty, non-public debt has demonstrated that it’s a dependable and versatile supply of capital for a lot of firms and has benefited from the engaging elevated charges surroundings.
“Arcmont’s pan-European community, dimension and scale means we are able to deploy vital quantities of capital to firms in occasions of market alternative and problem.”
Over the previous decade, Arcmont has raised greater than €28bn of investable capital throughout its direct lending, senior mortgage and capital options enterprise.
Final yr, Nuveen acquired a majority stake in Arcmont, bringing it into its €73bn non-public markets enterprise.
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“The success of Arcmont’s fundraise for direct lending fund IV is a mirrored image of the maturity of the non-public debt asset class and its institution as a mainstream supply of finance to companies,” stated William Huffman, head of Nuveen equities and stuck earnings.
“Additionally it is a testomony to the energy of the Arcmont enterprise and, one yr after Nuveen buying a majority curiosity in Arcmont, we couldn’t be extra delighted to have Arcmont as a part of the Nuveen group.
“We’re wanting ahead to the persevering with growth of our non-public capital capabilities in 2024 with new and modern choices to our world traders.”
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