eQ secures €70m for second credit fund

The fund of funds manager is raising the vehicle through a partnership with MV Credit.

Finland-based eQ Asset Management has raised €70 million for the successor to its 2017 debut fund.

The firm confirmed that eQ Private Credit II was launched in late 2018, has already received €70 million in commitments and expects to hold a final close during the first quarter of 2019.

The firm held a final close on eQ Private Debt Fund in March 2017, beating its €90 million target with €92 million raised.

Like the previous fund, eQ Private Credit II will focus on investing in direct, mainly senior, loans issued by European private equity sponsors. London-based MV Credit will again act as portfolio manager for the fund.

The 2017 vehicle could make a maximum of 75 percent in senior loans with the remainder in junior loans. It aimed to invest in between 25 and 40 loans with a net target return of 6 percent to 7 percent per annum. It is thought the new vehicle will adopt a similar strategy.

“eQ Private Credit II is the second private credit fund we have raised with MV Credit,” said Staffan Jåfs, director of private equity at eQ Asset Management. “MV was able to quickly invest the first fund in high-quality loans and the investment activity of Private Credit II is already well under way. In the current interest rate environment, private credit brings stability and yield potential linked to floating rates to fixed income allocations.”

The firm also announced the first closing of a private equity fund of funds focused on investing in opportunities in the US.