Capital Four closes Fund III at €1.5bn hard-cap

Fund III is ahead of schedule on deployment, meaning the firm was able to launch its fifth fund in the summer.

Danish asset manager Capital Four has held a final close of its latest private debt fund at €1.5 billion.

The vehicle, called Capital Four Private Debt III, initially targeted €1 billion, which it exceeded with commitments from both new and existing investors. LPs in the fund include insurance companies, endowments and pension funds.

Capital Four said the vehicle is already ahead of schedule on deployment with 90 percent of its capital invested. This enabled the fund manager to launch its successor fund, Private Debt V – Senior, earlier than planned during the summer.

Fund V will follow the same investment strategy as its predecessors, focusing on bilateral, senior secured financing to companies in the Nordics, DACH and Benelux regions. Target companies will have an EBITDA of between €10 million and €20 million and must have a resilient profile amid competitive market conditions.

The firm also plans for a large part of the fund’s loans to be sustainability-linked, which will make Fund V compliant with the EU SFDR Article 8. Capital Four Private Debt IV launched in July 2021 with a first close at €500 million.