Central and Eastern European private debt specialist CVI is preparing to launch a new vehicle with an initial commitment from the European Investment Fund.
The fund will have a fundraising target of €300 million and a hard cap of €500 million. CVI hopes the fund’s status as a Luxembourg-based vehicle will help it appeal to a broad institutional investor base.
It will utilise CVI’s existing strategy of providing prominently senior-secured direct lending to companies in the CEE region and targeting returns of more than 10 percent.
Fundraising will be supported by Arbour Partners and Gabriella Kindert, a supervisory board member at Mizuho Europe, who will work to promote the fund’s proposition to investors in Western Europe. Kindert will act as an independent senior advisor on strengthening the CVI brand.
“I believe the market opportunities in CEE are favourable,” said Kindert. “After the credit crisis, the lending gap was homogenous across Europe. But in Western Europe, many new initiatives filled the gap already.”
Warsaw-based CVI has approximately €1.2 billion of assets under management. It most recently raised a €600 million open-ended vehicle focused on senior debt opportunities in the CEE region.
Commenting on the new vehicle, CVI managing partner Rafał Lis said: “Our ambition is to leverage further on our position as a leading private debt fund manager in CEE, diversify our investor base and be recognised for our best practices, including our cutting-edge approach to ESG-related risks in the region.”
CVI expects to reach a first close on about €150 million by the fourth quarter of 2019.