European Capital holds interim close – exclusive

The alternative lender is edging towards the €500 million target on its debut senior debt fund, holding another close on around €400 million. It has also sealed its first Spanish unitranche deal.

European Capital Debt Management has held an interim close of around €400 million on its debut senior debt fund, PDI has learnt.

The close is the third on European Capital Private Debt Fund, PDI understands. 

European Capital declined to comment on the fundraising.

The Paris- and London-based lender expects to finalise fundraising in March 2016 and is targeting €500 million. In the second quarter of 2015, it held a close of €318 million, thought to be the fund’s second close. The vehicle provides senior, unitranche and mezzanine debt. EPIC Private Equity is assisting the firm with fundraising.

The firm announced today (6 January) a €40 million unitranche financing for the acquisition of Euromed by private equity sponsor The Riverside Company. The deal is European Capital’s first in Spain. 

Euromed is a manufacturer of herbal extracts and active ingredients used in over-the-counter pharmaceuticals, food supplements and cosmetics. The Spain-headquartered company sells 95 percent of its products abroad, across 35 different countries located mainly in Europe and the Americas. Proceeds from the financing will be used to expand the company geographically.

Tristan Parisot, managing director of European Capital in Paris, said in a statement: “We are pleased to partner with The Riverside Company and to support its acquisition of Euromed. Spain has become a very attractive market for private debt lenders. We have looked at many opportunities in Spain over the last twelve months and this first unitranche financing confirms our ability to provide tailor-made solutions to leading mid-market private equity sponsors looking to invest in Spain.”

Kevin Abrial, director at European Capital, commented: “With a proven track record of high-quality herbal extracts, a complete control over the value chain and the support of The Riverside Company, we are firmly convinced that Euromed is well-positioned to further expand internationally in the US and Asia and pursue its successful penetration of the high-end food supplements market.”

European Capital also has a UK SME debt fund of £100 million and has around €900 million in assets under management. It is a wholly-owned subsidiary of Nasdaq-listed American Capital.