Idinvest raises €400m, plans end-of-year close

The firm’s fourth direct lending offering has so far collected €400m, having launched last year.

Idinvest has pulled in roughly €400 million for its latest direct lending fund. The firm now anticipates holding a final close on the fund by the end of the year, Francois Lacoste, partner at Idinvest, told PDI.

Idinvest Direct Lending IV held a first close in November last year on just under €300 million, Lacoste noted. The firm is hoping to raise between €600 million and €700 million for the fund.

Lacoste noted the fund is mainly investing in businesses located in continental Europe with EBITDA ranging between €5 million and €20 million. While previous direct lending funds from Idinvest have involved up to 50 percent mezzanine financing, the latest offering is more conservative, Lacoste noted.

Approximately 75 percent of the loans made from the fund will be unitranche loans, Lacoste said. The fund is currently about 30 percent invested, he added.

According to materials on Idinvest’s website, exits from the firm’s direct lending funds generated internal rates of return of more than 16 percent in 2016. Returns from the latest direct lending product are likely to be lower, Lacoste noted, due to the higher proportion of unitranche debt versus mezzanine financing.

The firm attracted investors from insurance companies from France, Italy and Germany as well as other European institutional investors. Lacoste also noted Idinvest is seeing increasing interest from investors from the Middle East and Asia.