Fidelity launches its first European direct lending fund
Global asset manager Fidelity International has launched its first direct lending fund focusing on senior secured mid-market loans in Europe.
It has already completed its first transaction, providing senior financing to Clinias Dental Group – a dental care services business based in the Netherlands.
The fund is accessible only to institutional investors at present.
It is a Luxembourg domiciled closed-end investment vehicle, which invests in mid-sized businesses with annual earnings of between €5m (£4.33m) and €30m. It will focus on Northern and Western Europe, and is compliant with the Sustainable Finance Disclosure Regulation Article 8.
“A growing, and broader profile of investors are joining the structural trend to add and increase private assets allocations within their portfolios, and we expect this to expand further over time,” said Michael Curtis, head of private credit strategies at Fidelity International.
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“In particular, demand for private credit has soared in recent years as institutional investors seek relative safety of a secured debt product, providing floating rate income and positioned at the most senior point of the capital structure.
“We have invested heavily in growing the team to ensure we have the right level of resource and technical capability to drive our ambitious expansion plans.
“Today, our direct lending team comprises nearly 20 highly experienced investment professionals, who leverage the depth and breadth of Fidelity’s wider global credit research capabilities.”
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Fidelity noted that direct lending as an asset class has seen considerable growth as banks have pulled back on their lending activities.
According to Preqin data, in Europe, direct lending assets under management reached $248bn (£204.1bn) by December 2022.
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