Allianz Global Investors has reached a second close of its European Private Credit II fund on €290 million.
EPC II has secured commitments from insurers and corporate pension funds in Germany, France, Austria and Italy as well as various Allianz Group entities. It has a target of €400 million and a cap of €500 million.
The fund will offer access to pan-European mid-market direct lending through a senior-only strategy. It will predominantly invest in France and Germany with diversification achieved through other investments across Europe.
Loans in the portfolio will be privately negotiated and structured for mid-size companies with strong balance sheets and growth prospects.
EPC II is managed by AllianzGI’s European private credit team led by head of European private credit Damien Guichard with seven investment professionals based in Paris and Munich.
Commenting on the fundraising, Guichard said: “The covid-19 crisis will result in banks’ balance sheets becoming increasingly stretched, leaving more space for alternative lenders. EPC II is ideally positioned to accompany borrowers in their growth plans whilst providing an attractive risk-return proposition to institutional investors.”