Blackstone has closed on €13bn (£10.9bn) of investable capital for its European direct lending strategy, as more investors look to private credit on the continent.

The world’s largest alternatives manager announced the final close of its institutional fund, Blackstone European Senior Direct Lending Fund IV (BXDE IV), on Wednesday (4 November).

The €13bn figure spans BXDE IV and other European direct lending vehicles and includes anticipated leverage, the firm said.

The fund targets European borrowers across the size spectrum, with a focus on the middle and upper-middle market, the firm said.

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The bumper close comes as direct lending, particularly in the US, has experienced a difficult period, with some funds hit by redemption requests amid concerns over software exposure and loan quality.

However, this has prompted some investors to look to European private credit as a “diversifier” away from the US, according to some managers, with the European market in vogue over the past two years – a trend that could continue into 2027.

Blackstone said credit is a significant part of the opportunity, with it looking to invest more than $500bn (£372bn) of assets in Europe by 2035.

“This fundraise reflects investors’ confidence in private credit and our ability to deliver scaled financing across market cycles,” said Brad Marshall, global head of private credit strategies at Blackstone Credit & Insurance.

“We’re grateful for their continued trust and see strong, growing demand for high-quality private credit.”

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Since the launch of BXDE IV, Blackstone said it has committed capital to European companies, including taking lead lender roles in transactions such as Angelini Pharma’s take-private of Catalyst Pharmaceuticals (€1bn), Regnology (€780m), Odevo (€649m) and JTC (€382m).

“We believe Europe remains one of the most attractive private credit markets globally, with borrowers valuing the certainty, scale and flexibility we provide,” said Mike Carruthers, European head of private credit strategies at Blackstone Credit & Insurance.

“We thank our investors for their support and look forward to putting their capital to work across the region.”

Read more: Blackstone launches private markets fund open to non-US investors