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Alcentra raises €690m for opportunistic Europe fund

The firm’s special situations investment platform has grown to more than €1bn.

Alcentra has held a final close for its fund targeting opportunistic loans, bonds and structured credit to European companies on €690 million, the asset manager said on Tuesday.

Pension plans that invested in the Clareant Strategic Credit fund include the San Bernardino County Employees’ Retirement Association (a $25 million commitment), the Korea-based Public Officials Benefit Association ($50 million) and the Boston City Retirement System ($15 million), according to PDI data.

The vehicle has a three-year investment period followed by a three-year harvest period with up to two one-year extensions, according to an investor presentation to SBCERA. The fund’s management fee is 1.5 percent on invested capital, while the vehicle also charges a 20 percent carried interest over an 8 percent hurdle rate.

David Forbes-Nixon, chairman and chief executive officer at Alcentra, said in a statement that the fund strategy takes “advantage of market volatility and longer term, less liquid investment opportunities”.

The close of the firm’s Clareant Strategic Credit Fund brings the total assets under management for Alcentra’s special situations investment platform to more than €1 billion. The platform launched in 2007.

Alcentra’s special situations strategy has invested over €1.5 billion to date in loans, bonds, mezzanine and equity investments and has played leading roles in the refinancing and, or restructuring of companies across the UK, Germany, France and Italy.

The alternative investment firm had approximately $33 billion in assets under management as of 30 June, according to the statement. Alcentra is a subsidiary of BNY Mellon, which had a total of $1.8 trillion in assets under management as of the end of second quarter.