Harbert Management Corporation has held a final close of €122 million on its first European growth capital fund (HEGCF).
The firm held its third and final close with commitments from existing and new institutional investors including European government development agencies, private pensions, family offices and funds-of-funds.
At final close, HEGCF has committed around €86 million in 23 loan facilities. David Bateman, senior managing director and co-head of the fund said in a statement: “The broad geographic spread of our loans and the range of our investments suggests our timing has been spot-on. This continues to be an opportune time for our debt capital,” he added. Johan Kampe, senior managing director, is also co-head on the fund.
The fund, which lends to companies operating at the lower end of the small- to medium-sized enterprise (SME) market, was targeting €200 million, as previously reported by PDI. Harbert is expected to be in the market with its second fund in the series by the end of the year, PDI understands.
In September 2013, its debut European fund had held a first close, followed by a second on €93 million in May 2014, as previously reported by PDI.
The firm’s strategy, akin to the venture debt strategy developed in Silicon Valley, California, focuses on high-growth SMEs located in and around the major tech clusters throughout Northern and Western Europe. Harbert’s European team, based in London, now has five professionals targeting later-stage growth companies with a demonstrable ability to repay.
Downside protection is sought through secured loans with upside potential via a meaningful equity component.
Birmingham-headquartered Harbert Management Corporation had around $4.4 billion in assets under management as of 1 May 2015. Investment strategies include European and US real estate, venture capital, mezzanine debt, independent power, US private equity and public securities, as well as private debt.