Eurazeo is launching a non-public debt fund that can be open to retail buyers within the second half of 2024.
The French funding group has been closely energetic within the personal debt house of late, with the asset class now accounting for greater than 20 per cent of its belongings underneath administration.
Agathe Bubbe, director, wealth options inside Eurazeo’s funding companions staff, advised Various Credit score Investor that the agency has “very robust ambitions for the brand new fund” which can be much less diversified than its final retail providing.
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“We launched our first evergreen fund in France, this fund works effectively and we’re actually intent on creating on this sector,” she stated. “We’re launching one other long-term fund within the personal debt house within the second half of 2024.”
Bubbe stated that the primary fund was a mixture of hybrid belongings, comprising personal debt and secondaries, together with fairness investments, and attracted plenty of curiosity all through Europe and globally.
“We have been a pioneer in Europe after we first launched the fund in 2018 and we thought it was crucial to have that blend of technique as a result of market surroundings and diversification,” she added. “Nonetheless, as Eurazeo grew we now handle greater than €7bn of personal debt, specialised within the decrease mid-market house. We consider that now we have sufficient diversification, deal circulate and alternatives, whereas the present market surroundings permits us to be assured in launching a brand new fund.”
Bubbe declined to offer a fundraising goal for the brand new fund however famous that the agency’s final personal debt programme raised €1bn (£854,000) from personal shoppers throughout Europe, “regardless of robust regulatory protectionism beforehand for retail entry to non-public debt”.
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The personal debt market has attracted a flurry of capital lately, as personal fairness homes and asset managers faucet into the sector seeking yield in a high-interest-rate surroundings.
This has resulted in intensifying competitors for offers, however Bubbe stated that Eurazeo is effectively positioned to make the most of alternatives within the decrease mid-market section.
“Now we have a really robust deal circulate, complemented by our positioning within the decrease mid-market section, with very robust deployment capabilities, our historic relationships with GPs in Europe and excellent relations with firms we’ve financed to this point,” she stated.
Final November, Eurazeo closed its sixth direct lending fund, elevating €2.3bn in capital, surpassing its preliminary goal of €2bn.
The fund raised €900m from retail buyers, taking the entire scale of the group’s personal debt programme to €3.2bn.
