Jefferies Credit Partners has reached $4bn (£2.95bn) of lending capacity for its European institutional direct lending strategy at first close.

The private credit manager’s flagship fund has been anchored by commitments from Allianz Global Investors, with investments from the South Carolina Retirement System Investment Commission and other institutional investors.

The fund was also seeded at close through the acquisition of a portfolio of recently originated European private credit investments, the firm said.

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Jefferies said it anticipates close to $4bn of lending capacity for its European strategy in the near term, including capital from the fund, two partnership accounts expected to close later in 2026, and Jefferies’ balance sheet resources.

“Europe remains an attractive and underpenetrated market for private credit, and we believe we have a differentiated access point to the European sponsor community through Jefferies’ relationships, which has enabled us to scale our Europe platform meaningfully in a short window,” said James Pearce, head of European direct lending at Jefferies Credit Partners.

“The strong investor support for this first close reflects confidence in our team, our sourcing model and the opportunity set ahead.”

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Jefferies Credit Partners, the private credit manager and asset management division of Jefferies Finance, launched its European direct lending platform in 2024.

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