Eiffel Funding Group has launched a direct lending fund which will likely be devoted to small- and medium-sized enterprises (SMEs) in Europe.
The Eiffel Influence Direct Lending fund has a goal of €400m (£338m) and has simply finalized its first closing at €200m with a variety of institutional buyers, together with the European Funding Fund.
The fund goals to handle the non-banking financing and affect wants of SMEs, whereas additionally providing an affect investing answer for buyers.
It would present unitranche financing to roughly 25 French and European SMEs with a mean goal EBITDA of between €5m and €15m. Services are anticipated to vary from €10m to €30m.
“As an impact-conscious investor, we’re all the time seeking to design methods able to producing most optimistic externalities,” mentioned Fabrice Dumonteil, president of Eiffel Funding Group.
“Eiffel Influence Direct Lending illustrates this strategy by offering an modern answer to the current wants of SMEs.
Learn extra: Eiffel Vitality Transition III launches with €500m raised
“We’re delighted with the enthusiastic reception the fund has acquired from buyers, and warmly thank them for his or her belief and help, which allows us to speed up our technique in favour of the decarbonization of European SMEs.”
The fund incorporates a collection of affect covenants which will likely be agreed with every financed companys’ administration, to insure that each one funded SMEs meet sure ESG necessities.
“The EIF is delighted to help the launch of this new fund, which provides financing tailor-made to the precise wants of SMEs and is absolutely according to the technique of the EIF and the InvestEU program,” mentioned Marjut Falkstedt, chief government of the EIF.
Learn extra: France’s Eiffel to launch affect unitranche fund
“The EIF is dedicated to supporting the expansion of SMEs by creating an setting conducive to their growth, thereby contributing to the European economic system. The fund may also play a key position in serving to SMEs take account of environmental and social issues.
“By educating and integrating these points into the event of European SMEs, we’re strengthening their resilience and long-term competitiveness, whereas selling a extra sustainable and equitable future for all.”
The fund has already made its first transaction, with an funding in heading-ventilation-cooling specialists SATEP SAS, to fund the corporate’s development.
Eiffel Funding Group manages greater than €3.2bn in AUM, with over €1bn invested in company non-public debt in 2023, serving to greater than 40 corporations.
Learn extra: Deep affect: Particular report on affect investing
