Capital Four raises €1bn for first close of Fund V

Copenhagen-based debt investor Capital Four has held a first close of its latest senior private debt fund on €1 billion.

The fund, Private Debt V – Senior, has been raising for six months and Capital Four reports it is ahead of its target at this point. It has received commitments from existing and new investors including insurance companies, endowments and pension funds.

Private Debt V will follow the same strategy as its predecessor funds, making first lien senior secured bilateral financing to companies in the Nordics, BACH and Benelux regions. Target companies will have an EBITDA of €10 million to €20 million and the fund has already begun deploying in Q1 2023.

It also plans for a large part of the loans included in the portfolio to be sustainability-linked, making the fund compliant with EU SFDR Article 8.

Capital Four closed its third fund with €1.5 billion in September 2022, which prompted it to accelerate the launch of Fund V. The firm is also raising a fourth fund, which was reported to have €500 million at its first close in July 2021.