Exclusive: Alcentra ups target in second DL fundraise

BNY Mellon-controlled Alcentra has launched its second direct lending fund. The new vehicle will include both levered and unlevered sleeves with a target well above the €850 million debut European direct lending vehicle.

Alcentra is seeking €1.5 billion for its latest European direct lending vehicle, a source close to the situation told PDI. Though the final total could be well above that, the source added.

Alcentra did not respond to a request for comment ahead of publication. 

The London-headquartered firm has begun marketing the successor fund to Alcentra European Direct Lending Fund which reached a final close of €850 million around nine months ago in November 2014. The first direct lending fund was around 50 percent deployed when the final close was held and is now fully invested, the source said. Net returns from the first fund are around 10 percent, added the source.

The new vehicle will be split between a €1 billion unlevered piece and a €500 million levered sleeve. A private placement memorandum has been circulated to potential investors in Europe, continued the source.

Alcentra executed seven unitranche financings for borrowers over the six months between 1 October 2014 and the 31 March 2015, according to the Altium MidCapMonitor, a deal tracker published by advisory firm Altium Capital.

Alcentra’s European direct lending platform is headed by Graham Delaney-Smith. The global asset management firm has around $24 billion in assets under management and invests in senior loans, high yield bonds, direct lending and mezzanine as well as structured credit and distressed debt. The London-headquartered firm is owned by BNY Mellon Investment Management and has offices in New York, Boston, Düsseldorf and a presence in Singapore.