Exclusive: ICG closes direct lending fund on €3bn

Senior Debt Partners II reached its first and final close this summer.

Intermediate Capital Group has formally closed its second direct lending fund on the €3 billion hard-cap, PDI has learned, as previously reported. There was no previous close on the vehicle.

ICG has confirmed that overall it has raised €4.7 billion for its senior direct lending strategy including Senior Debt Partners Funds I and II and segregated accounts.

The new vehicle gathered commitments from a range of institutional investors across the globe including existing and new limited partners.

Senior Debt Partners II is the successor fund to Senior Debt Partners I which held a final close of €1.7 billion in April 2014, surpassing its initial target of €1 billion. Max Mitchell, ICG’s head of direct lending, is the core fund manager.

The strategy focuses on senior direct lending to mid-market companies in Europe including a mix of sponsored and unsponsored borrowers. The proportion of unsponsored deals has risen to around 30 percent since the firm launched the strategy.

ICG prepared the launch of its second direct lending fund in the fourth quarter of 2014, as previously reported. The vehicle had a target of €2.5 billion.

In July the firm closed its sixth mezzanine vehicle on €3 billion and reported record fundraising of €6.4 billion for the 12 months ending 31 March.