ICG hits €1.7bn hard cap for direct lending fund

The firm, headquartered in the shadow of London's St. Paul's cathedral, raised 70 percent more than its initial target and has already deployed half the fund since a first close last February.

ICG has closed its first senior debt-focused direct lending fund at its hard cap of €1.7 billion, the firm said on Monday.  

The London-headquartered asset manager easily surpassed its initial target of €1 billion for the fund, which is called ICG Senior Debt Partners I.  

It held a first close last February and has already deployed half the capital, having completed 14 deals in Germany, France, Luxembourg and the UK.  

The fund received a €190 million commitment from the UK Treasury-backed Business Finance Partnership, ICG confirmed, meaning a significant amount of the fund must be deployed in the the firm's home market.  

Geographically, 40 percent of LPs in the fund were based in the UK and Ireland, 34 percent came from continental Europe, 23 percent from Asia-Pacific and the remainder (3 percent) came from North America. Pension funds comprised half the LPs, asset managers accounted for 22 percent of the commitments, and 23 percent were insurers. The remainder were sovereign wealth funds.  

The fund has a three year investment period, and will be managed by Max Mitchell and Jeff Boswell.  

Dagmar Kent Kershaw, head of credit fund management at ICG, said in a statement: “ICG is seeing strong interest for European credit. We will continue to develop new ideas as institutional investors seek to diversify their portfolios to find new sources of yield. ICG is playing a leading role in contributing to liquidity to mid-market private companies in Europe. This latest fund close reflects the support of investors as well.”