Alcentra closes strategic credit fund below target at €557m

The special situations fund will seek out market dislocation across Europe.

Alcentra has closed its latest strategic credit fund at €557 million, falling far short of its €1 billion target.

Strategic Credit Fund II was launched 12 months ago and has now reached a final close. The fund has a €1 billion target and a €1.5 billion hard-cap but in the end raised only a little over half its target.

The fund attracted a mix of existing and new investors from across EMEA, the US and Asia and brings the current assets under management for the Alcentra special situations platform to more than €1.5 billion.

So far, Strategic Credit Fund II has deployed more than €200 million across 20 investments in both primary and secondary markets. Alcentra said it was well positioned to capitalise on dislocation in Europe’s leveraged loan and high-yield bond markets and is concentrating its deployment on senior secured debt.

Jonathan DeSimone, CEO of Alcentra, commented: “We expect the currently favourable environment for the fund to continue into 2021 as companies across Europe react to the ongoing challenges caused by the covid-19 pandemic. It will continue to execute on its strategy of leveraging Alcentra’s extensive coverage of the corporate credit market to identify attractively priced secondary market opportunities, or to assist companies with their liquidity needs alongside a balance sheet recapitalisation.”

The fund has a global investment team of 10 professionals dedicated to opportunistic investing in corporate credit.