eQ Asset Management has entered the private debt space. The firm announced it held and first and final close on its newly minted debt fund at the end of March.
The fund raised approximately €90 million in commitments from investors. The firm noted it had received commitments from 38 different LPs for the fund.
The fund will predominantly invest in senior loans, but can invest up to 25 percent of its portfolio in subordinated debt. It is looking to make 25 to 40 loans, focusing on private-equity sponsored European companies.
The fund is targeting a return between 6 and 7 percent per annum. In the announcement, Staffan Jåfs, head of private equity at eQ, said the firm intends for the fund to be fully invested within 18 months.
eQ took steps to bolster its private debt team in recent times. The firm hired Anne Riekki, previously of Finnish Industry Investment, to head up its debt efforts.
Riekki and Jåfs did not return requests for additional comment by time of publication.