EQT Credit has raised €1.4 billion for a successor to its 2016 direct lending fund, according to a source familiar with the situation.
The fund, EQT Mid-Market Credit II, will follow on from the €530 million vehicle that was closed in 2016 and is now fully invested with 16 investments.
EQT is thought to have targeted €1 billion for the latest vehicle but has already broken its target and has a hard cap of €2 billion.
Six investments have already been made, accounting for approximately 30 percent of the fund’s existing commitments.
Similarly to the previous vehicle, the fund will focus on providing finance for mid-market companies in Europe, providing finance to firms that may not be able to access funding via banks.
EQT Mid-Market Credit I raised €530 million at final close in April 2016, beating its €500 million target. It invested primarily in companies active in the healthcare, industrial and telecommunications sectors in the Nordic region, Germany and the UK.