Daily News: November 25, 2014

Alcentra Closes European Direct Lending Fund

Alcentra announced closing of the Alcentra European Direct Lending Fund with investor commitments totaling €850 million ($1,056 billion). The focus of the fund is to provide debt financing to middle market companies in Europe.

With the closing of the fund, the firm’s committed capital for the strategy now exceeds €1.5 billion (1.86 billion).

“Direct lending is a large, attractive, long-term opportunity given the balance sheet constraints of European banks and the historical lack of non-bank lenders,” said Graeme Delaney-Smith, managing director and head of European direct lending for Alcentra. “Our size, experience and sourcing capabilities leave us well positioned, and has allowed us to invest a significant amount of the Fund over a relatively short period.”

“As one of the largest managers of sub-investment grade, corporate debt in Europe, direct lending has always been a key part of our business platform,” commented David Forbes-Nixon, chairman and CEO of Alcentra. “This fund is a strong endorsement of Alcentra’s capabilities, with global investor participation by pension funds, insurance companies, endowments, foundations, wealth managers, and asset managers.”