Bridgepoint has raised €5.1bn (£4.4bn) for its fourth direct lending fund at final close, amid heightened investor demand for European private credit.

The $98bn (£72.8bn) alternative asset manager said the close of Bridgepoint Direct Lending IV exceeded its original €4bn target. The firm attributed the fundraise to strong investor demand for European private credit, as investors seek diversification beyond the US.

According to the firm, the raise included recommitments from existing investors alongside a marked geographic expansion of its limited partner base globally. Around 35 per cent of commitments came from investors new to Bridgepoint, the firm said.

“European private credit is now pricing at levels that reflect that strength and depth, and with global capital rotating towards the region, we see that momentum continuing,” said Andrew Konopelski, managing partner of Bridgepoint Credit.

“Institutional investors today are looking for managers that can consistently originate opportunities, maintain underwriting discipline and invest capital responsibly across market cycles.”

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Bridgepoint, which has a credit platform with $20bn in assets, said the fund is already 40 per cent invested, providing primarily first-lien senior secured loans to more than 20 mid-market companies across Europe.

The fundraise comes as one alternatives manager recently commented that European credit has remained “in vogue” throughout 2026, following a similar trend in 2025. It follows a period in which many non-US investors increased their exposure to Europe, partly in response to tariff uncertainty, they said.

However, some managers have also attributed growing interest in European private credit to concerns surrounding the US semi-liquid private credit market.

Hayfin raised more than €15bn for its fifth direct lending fund in July, with the firm attributing the record fundraising to investors seeking “conservative fund structures” in the wake of strains in semi-liquid US private credit funds.