Triton closes third debt fund with more than €1bn

Triton has announced the closing of its third private debt fund, having exceeded its €1bn (£0.83bn) fundraising target.

The fund – TDO III – has already invested approximately €500m across more than 20 investments with a realised value of more than €150m.

TDO III has been funded by a variety of institutional investors including pension funds, sovereign wealth funds, foundations, family offices and insurance companies.

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It invests opportunistically in mid-market European companies, primarily in the core sectors of business services, industrial tech, and healthcare. In terms of sourcing, Triton is targeting the secondaries market.

“We thank all our new and existing investors for their support,” said Amyn Pesnani, TDO managing partner.

“TDO III has been raised at an exciting time that is rich in opportunities as the European leverage finance market continues its rapid growth and conditions are favourable for opportunistic debt investing.

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“With our differentiated sourcing capability, proven investment approach and ability to draw on the strengths of the wider Triton platform, TDO III is strongly positioned to benefit from these trends.”

TDO III follows a “pull-to-par” investment strategy which is designed to identify businesses that are fundamentally good but are facing short-term issues that may cause their debt prices to trade down. The expectation is that debt will trade up once the temporary headwinds have passed or been addressed.

Triton said that it sees this strategy as being particularly relevant in the current European economic and business environment.

TDO III is the predecessor to TDO II, which closed at €744m in October 2020.

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