Alcentra, one of Europe’s largest and longest tenured managers of private debt and part of BNY Mellon Investment Management, has closed its capital raise for its European direct lending strategy.
The firm said it managed to raise €5.5 billion, which was well over its target size of €3 billion, thanks to its support from institutional investors from Europe, Middle East, USA and Asia.
The strategy aimed to provide investors with access to largely Pan-European private credit investment opportunities, with a strong focus on senior debt.
Alcentra also invests in a wide range of transaction sizes and types, with positions of €20 to €300 million in leverage buyouts, management buyouts, recapitalisations, refinancings, buy-and-build, and other financings for businesses of up to €1 billion in enterprise value, it said.
Alcentra’s co-head of European direct lending, Peter Glaser, said: “Our large and growing direct lending team has deep experience in the sourcing, evaluation, structuring and management of credit investments.
“This expertise and access to a broad universe of opportunities facilitates the creation of a high quality, diversified portfolio focused largely on senior debt.
“We take a conservative and prudent approach to credit selection, lending to stable businesses aiming to provide investors with attractive returns relative to risk.”
The fundraising was expected to bring assets under management (AUM) for Alcentra’s direct lending strategy to over US$10 billion and the firm’s total AUM to US$39 billion.