Eurazeo closes fifth direct lending fund at €1.5bn

The vehicle has already committed most of its capital and the fund manager is planning to launch a follow up fund in the near future.

France-based fund manager Eurazeo has announced the final close of its fifth direct lending fund at €1.5 billion.

The fund, Idinvest Private Debt V, beats its initial €1.2 billion target and brings Eurazeo’s private debt programme to a total size of €2 billion.

Eurazeo said the vehicle attracted commitments from its long-standing investors as well as new investors, with more than 70 percent of LPs based outside of France.

The investment team has more than 15 years’ experience financing European SMEs. It focused on senior and subordinated debt investments for firms valued between €30 million and €300 million.

The firm revealed it is already planning to launch a successor vehicle, Eurazeo Private Debt VI, due to a rapid investment pace in the current environment. Fund V has already committed almost 80 percent of its capital, including 15 investments in companies outside of France.

François Lacoste, managing partner and head of private debt at Eurazeo, said: “In these unusual times, we are very grateful for the continued support of our investors and the trust they have placed in us, and we are proud to have exceeded our initial fundraising target. We are convinced that the private debt market will continue to be a source of new opportunities for Eurazeo.”

Eurazeo acquired the remaining stake it did not already own in debt investor Idinvest in September last year.