Eiffel launches direct lending fund dedicated to SMEs
Eiffel Investment Group has launched a direct lending fund which will be dedicated to small- and medium-sized enterprises (SMEs) in Europe.
The Eiffel Impact Direct Lending fund has a target of €400m (£338m) and has just finalized its first closing at €200m with a number of institutional investors, including the European Investment Fund.
The fund aims to address the non-banking financing and impact needs of SMEs, while also offering an impact investing solution for investors.
It will provide unitranche financing to approximately 25 French and European SMEs with an average target EBITDA of between €5m and €15m. Facilities are expected to range from €10m to €30m.
“As an impact-conscious investor, we are always looking to design strategies capable of generating maximum positive externalities,” said Fabrice Dumonteil, president of Eiffel Investment Group.
“Eiffel Impact Direct Lending illustrates this approach by providing an innovative solution to the present needs of SMEs.
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“We are delighted with the enthusiastic reception the fund has received from investors, and warmly thank them for their trust and support, which enables us to accelerate our strategy in favour of the decarbonization of European SMEs.”
The fund incorporates a series of impact covenants which will be agreed with each financed companys’ management, to insure that all funded SMEs meet certain ESG requirements.
“The EIF is delighted to support the launch of this new fund, which offers financing tailored to the specific needs of SMEs and is fully in line with the strategy of the EIF and the InvestEU program,” said Marjut Falkstedt, chief executive of the EIF.
Read more: France’s Eiffel to launch impact unitranche fund
“The EIF is committed to supporting the growth of SMEs by creating an environment conducive to their development, thereby contributing to the European economy. The fund will also play a key role in helping SMEs take account of environmental and social concerns.
“By educating and integrating these aspects into the development of European SMEs, we are strengthening their resilience and long-term competitiveness, while promoting a more sustainable and equitable future for all.”
The fund has already made its first transaction, with an investment in heading-ventilation-cooling specialists SATEP SAS, to fund the company’s growth.
Eiffel Investment Group manages more than €3.2bn in AUM, with over €1bn invested in corporate private debt in 2023, helping more than 40 companies.
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