Veld Capital has announced it has closed an asset-backed credit continuation vehicle at €355m (£307m) following a competitive secondary auction process, with funds managed by Blue Owl’s Alternative Credit strategy acting as the lead investor.

The vehicle was established to acquire a diversified portfolio of high-quality, cash-flowing European asset-backed finance assets, providing an attractive liquidity option to Veld’s existing investors.

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The partnership with Blue Owl will further support Veld’s continued expansion into asset-based credit across Europe, the business said, with additional capital committed beyond the existing asset base to capitalise on a strong pipeline already in place.

To date, Veld has deployed roughly €3bn, largely into performing asset-backed credit investments. This approach includes a wide range of solutions for financial institutions across predominantly consumer and SME debt, comprising whole-loan portfolios and risk transfer, as well as targeted asset-backed lending to both private companies and asset owners.

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“We are pleased to launch this new investment vehicle which further underlines what has been a core focus for us since inception in 2009, consolidating our position at the leading edge of private asset-backed finance in Europe,” said Justin Sulger, managing partner at Veld.

The firm said the close reflects the strong demand for both private credit secondaries and asset-backed credit strategies more broadly in the market today.