Investec announces €200m close of latest private debt fund

Investec Alternative Investment Management (IAIM) has hit its €200m (£166m) first close target for its second Private Debt Fund (PDF II).

The fund has achieved 40 per cent of its target subscription level of €500m. It follows a €250m raise for its inaugural private debt fund.

PDF II is a closed-ended, Luxembourg-based fund, focused on providing senior secured debt and subordinated debt for private equity and corporate-backed businesses with EBITDA between €3m and €50m, primarily located in the UK, Ireland, Benelux and DACH regions.

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The fund primarily targets growth-oriented businesses underpinned by defensive business models, which is a segment underserved by banks and fund providers.

The firm said PDF II can invest in all eligible investments originated by the direct lending team, leveraging the full breadth of the Investec platform.

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Over the last 14 years, the direct lending team has sourced more than €9.5bn in loans across more than 330 transactions. With a core focus on capital preservation, investors can access a scalable source of proprietary investment opportunities.

“We are pleased to announce the successful first close of our second private debt fund, PDF II with both new and existing investors joining our fast-growing platform,” said Callum Bell, director at IAIM and head of direct lending. “We are delighted to reach this milestone and it reflects the latent demand from investors to access differentiated and underserved segments of the wider direct lending landscape working with established and proven managers like Investec.”

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