Exclusive: European Capital holds second close

The European arm of American Capital is more than half way towards its target for its first direct lending fund.

European Capital has held a second close on its first direct lending fund, raising north of €300 million so far, several people familiar with the matter said. The firm held a first close earlier in the year.

The private debt lender, which is seeking €500 million for the European Capital Private Debt Fund, has raised commitments from a number of large European financial institutions.

EPIC Private Equity and JPG Private Equity are placement agents on the funds, PDI understands.

European Capital and EPIC Private Equity declined to comment. JPG Private Equity were not available for comment at time of publication.

The European subsidiary is wholly owned by Washington, DC-headquartered American Capital and has offices in London and Paris. It invests in pan-European equity, mezzanine and senior debt investments. The group overall invests between $10 million to $600 million per company in North America and €10 million to €300 million per company in Europe.

In March this year, European Capital arranged the unitranche financing of CBPE Capital’s acquisition of sofa.com. The firm also manages a UK SME private debt fund of £100 million that closed in September 2014 and invests in businesses with turnover of up to £100 million.

The British Business Bank committed £50 million to the fund, a sum matched by European Capital and its affiliates.

European Capital has €900 million in assets under management and has invested €3.7 billion in roughly 100 companies in Europe.

Nasdaq-listed American Capital has $23 billion of assets and $92 billion of total assets under management, according to its website.