CVC Credit Partners is preparing its first direct lending fund targeting €600 million, a source familiar with the matter said. A private placement memorandum is due to be launched in the coming weeks.
The fund will target lending to mid-market corporates in Europe. CVC’s main business is performing credit but it is expanding its lending remit from the large-cap market down into the mid-market as that is where the credit opportunities are at present, PDI understands.
The new structure follows a separately managed account mandate, which is believed to be a few weeks from holding a final close targeting €300 million. . A number of investments have been made by the fund already.
Neale Broadhead, managing director and portfolio manager, based in the UK, is leading the initiative in Europe. Broadhead joined in February 2014 from Lloyds Banking Group, where he was a managing director and head of the mid-market acquisition finance group. Meanwhile, Tom Newberry, partner and head of private funds based in the US, is also instrumental in the new initiative, PDI understands.
CVC declined to comment.
The credit manager has 12 offices in cities across Europe and is said to be using its network on the ground to establish deal flow.
Last month it emerged that CVC is also in the early stages of raising a $750 million global special situations fund. CVC joins other big-name fund managers including Sankaty, ICG and Permira, who are in the process or ready to start raising funds for direct lending in Europe.