Investec secures €165m for debut private debt fund

The fund is the firm’s first closed-ended private debt vehicle and builds on 10 years of balance sheet lending.

Asset manager Investec has launched its first direct lending fund with €165 million of commitments.

The Investec Private Debt Fund I raised capital from European insurance and pension funds and is structured as a closed-ended special limited partnership domiciled in Luxembourg. Investec declined to reveal the fundraising target and lifespan.

The fund will lend to private equity and corporate-backed businesses with an EBITDA of between €3 million and €75 million based in the UK, Ireland, Benelux and DACH regions. It will focus primarily on the lower end of the EBITDA range, which it said is an area underserved by banks and other funds.

Investec’s growth and leveraged finance team will manage the fund, headed by Callum Bell. The team has 37 investment professionals and more than 10 years’ experience originating, investing and managing private debt assets.

The fund will invest in all eligible investments originated by Investec, which it said will give investors immediate and scalable access to a proprietary source of investments.

Bell added: “The powerful combination of balance sheet and fund capital will enable us to be even more relevant in the delivery of innovative finance solutions to growth orientated businesses and private equity clients.”