Arcmont closes €10bn European direct lending fund
Arcmont has closed its latest European direct lending fund with investable capital of €10bn (£8.55bn), making it one of the largest direct lending funds ever raised in Europe.
The Arcmont European Direct Lending Fund IV was initially targeting between €8bn and €10bn.
To date, the fund has committed approximately 55 per cent of its capital. It follows a strategy of investing in a defensive, diversified portfolio of mainly first lien senior and unitranche loans, as well as second lien and subordinated loans. The fund can also hold equity or warrant positions alongside those loans, where appropriate.
Anthony Fobel, chief executive of Arcmont, said that the fund’s success was due to the attractiveness of European private debt among investors, and hailed the potential of the sector in the current economy.
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“Direct lending has an essential role to play in providing financing across the European market,” Fobel said.
“During a time of macroeconomic uncertainty, private debt has demonstrated that it is a reliable and flexible source of capital for many companies and has benefited from the attractive elevated rates environment.
“Arcmont’s pan-European network, size and scale means we can deploy significant amounts of capital to companies in times of market opportunity and challenge.”
Over the past decade, Arcmont has raised more than €28bn of investable capital across its direct lending, senior loan and capital solutions business.
Last year, Nuveen acquired a majority stake in Arcmont, bringing it into its €73bn private markets business.
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“The success of Arcmont’s fundraise for direct lending fund IV is a reflection of the maturity of the private debt asset class and its establishment as a mainstream source of finance to businesses,” said William Huffman, head of Nuveen equities and fixed income.
“It is also a testament to the strength of the Arcmont business and, one year after Nuveen acquiring a majority interest in Arcmont, we could not be more delighted to have Arcmont as part of the Nuveen group.
“We are looking forward to the continuing expansion of our private capital capabilities in 2024 with new and innovative offerings to our global investors.”
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