Munich-based investor Golding Capital Partners has held a first close of its private debt co-investment fund at €75 million.
The fund, Golding Private Debt Co-Investment 2021, is the firm’s first dedicated co-investment vehicle. It has a target of €200 million and is structured as a Luxembourg fund with an eight-year lifespan and a target return of at least 7-8 percent net IRR. The final close is expected in the second half of 2023.
The fund aims to give investors access across the European direct lending market by co-investing alongside primary funds. Deals will benefit from double due diligence conducted by both Golding and partner funds. Golding said the vehicle is suitable for both experienced investors looking to expand their private credit allocations, as well as those looking for first-time exposure to the asset class.
The fund expects to make between 20 to 25 individual investments and will focus on first lien, senior lending transactions in Europe. Its preferred borrowers will be mid-market European businesses in stable sectors such as software and IT, business services and healthcare. It has made two investments to date in a software company and a roof refurbishment business.
Jakob Schramm, partner and head of private credit at Golding, said: “The private credit segment and direct lending in particular are still growing quickly, because many banks are continuing to withdraw from the new lending business. The pandemic has exacerbated this secular trend. And, in this advantageous situation, our investors can benefit from rising interest rates, which we distribute regularly.”