ICG to close SDP II around €3bn hard-cap

The asset manager is in the process of closing its second direct lending fund.

London-based Intermediate Capital Group is expected to close its second direct lending fund around the €3 billion hard-cap, PDI has learned.

The fund is in the process of closing, a source with knowledge of the situation said. There has been no previous close on the fund,two sources said.

ICG declined to comment.

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, head of direct lending at ICG, is the core fund manager.

The strategy focuses on senior direct lending to mid-market companies in Europe, primarily sponsorless deals originated by ICG.

ICG prepared the launch of its second direct lending fund in the fourth quarter of 2014, as previously reported by PDI. SDP II was targeting €2.5 billion, PDI understands. To execute a single closing on the hard-cap is “pretty impressive” and would suggest the direct lending strategy is popular with limited partners, said a second source.

The firm is also marketing its sixth flagship mezzanine fund, ICG Europe Fund VI, and is seeking a similar total to Fund V’s €2.5 billion.