EQT raises €2.3bn for second mid-market debt fund – exclusive

The successor to the firm’s 2016 vehicle has raised four times as much capital for European mid-market lending.

EQT has held a final close of its second mid-market debt fund on €2.3 billion, more than double its €1 billion target.

The €2.3bn of available capital for EQT Mid-Market Credit II includes anticipated leverage and the fund is more than four times as big as its predecessor fund, which closed on €530 million in 2016.

The fund includes a levered sleeve, in which investors can use up to 1:1 leverage.

The vehicle will continue the strategy of providing finance to European mid-market companies with a focus on performing businesses with defensive characteristics and is expected to have an investment period of around four years.

Andrew Konopelski, partner and head of EQT Credit, will lead the investment team supported by CIO Paul de Rome and partners Paul Johnson and Cyril Tergiman.

“Our focus on local sourcing and diligence, supported by EQT’s network of Industrial Advisors, as well as our capability to invest in a broad range of situations, has been key to EQT Credit’s investment approach over the last 10 years. The EQT Credit platform has developed significantly and we are looking into ways of transforming and broadening the offer even further,” said Konopelski.

The fund is currently 30 percent invested across 12 different investments, with recent financings including Medifox, Dukes Education and VPS.

Existing and new investors committed to the fund, with LPs from across Europe, Asia and North America including pension funds, insurance companies, endowments, foundations and family offices.