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Eurazeo to launch personal debt fund for retail buyers in second half of 2024


Eurazeo is launching a non-public debt fund that might be open to retail buyers within the second half of 2024.

The French funding group has been closely lively within the personal debt house of late, with the asset class now accounting for greater than 20 per cent of its property below administration.

Agathe Bubbe, director, wealth options inside Eurazeo’s funding companions group, informed Various Credit score Investor that the agency has “very robust ambitions for the brand new fund” which might 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 property, comprising personal debt and secondaries, together with fairness investments, and attracted a variety of curiosity all through Europe and globally.

“We had 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 atmosphere 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 we now have sufficient diversification, deal circulation and alternatives, whereas the present market atmosphere permits us to be assured in launching a brand new fund.”

Bubbe declined to present a fundraising goal for the brand new fund however famous that the agency’s final personal debt programme raised €1bn (£854,000) from personal purchasers throughout Europe, “regardless of robust regulatory protectionism beforehand for retail entry to personal debt”.

Learn extra: Personal debt buyers count on rise in dealmaking and fundraising

The personal debt market has attracted a flurry of capital in recent times, as personal fairness homes and asset managers faucet into the sector looking for yield in a high-interest-rate atmosphere.

This has resulted in intensifying competitors for offers, however Bubbe stated that Eurazeo is effectively positioned to reap the benefits of alternatives within the decrease mid-market section.

“Now we have a really robust deal circulation, complemented by our positioning within the decrease mid-market section, with very robust deployment capabilities, our historic relationships with GPs in Europe and superb relations with corporations we’ve financed to date,” 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 overall scale of the group’s personal debt programme to €3.2bn.



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