Alternative asset manager Arini has closed its inaugural European direct lending fund, targeting a deployment of over $4bn (£3bn), including anticipated leverage.

Arini Direct Lending Fund I received commitments from pensions, sovereign wealth funds and other financial institutions based across North America, Europe and the Middle East.

The fund has so far deployed close to $2bn across a range of sectors and geographies, focused on founder-led, family-owned and sponsor-backed businesses. Arini said the fund’s portfolio holds senior secured loans from borrowers demonstrating recurring and underwritable cash flow profiles, operating in industries with limited risk of disruption.

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This scale of deployment demonstrates the depth of the European middle market opportunity set, the firm added.

“De-banking in Europe is creating a major supply/demand imbalance in favour of middle market lenders,” commented Hamza Lemssouguer, founder and chief investment officer at Arini. “We’ve built a resilient portfolio with conservative leverage metrics and strong loan documentation, supported by deal flow from a variety of sourcing channels.”

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Arini’s direct lending origination is supported by a strategic sourcing alliance with Lazard and Arini’s existing relationships with banks seeking to grow their client activity in a capital-efficient manner.

The firm employs more than 180 professionals globally, who have extensive experience across corporate and asset-backed private credit markets.

It was founded in 2021 and has approximately $22bn in assets under management, with operations stretching London, New York, Abu Dhabi, Warsaw, and Jersey.

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