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Kartesia beats previous fundraise by 70%

The London-based fund manager has posted a final close for its fourth fund on €870m, compared with fund three’s €506m.

Kartesia, the London-based pan-European fund manager, has announced the final close of its fourth fund on €870 million after less than nine months of fundraising.

The final total was the hard cap for the fund, which had a target of €750 million. The fund – known as Kartesia Credit Opportunities IV – is 70 percent bigger than the firm’s third fund, which closed on €506 million. It had raised between €400 million and €425 million at first close earlier this year.

The firm’s first and second funds raised €125 million and €200 million respectively.

Jaime Prieto, co-founder and managing partner of Kartesia, told PDI the firm had succeeded in its goal of attracting US investors as well as more investors from Europe and the Middle East.

He said the firm was able to concentrate on expanding its investor base having raised as much as the previous fund solely through commitments from existing investors. All of the existing investors re-upped to the new fund.

He declined to identify any of the investors, apart from Sienna Capital, the alternative investment platform of Belgian publicly traded investment holding company Groupe Bruxelles Lambert.

Prieto attributed the growing popularity of the firm’s corporate loans strategy to its pan-European reach, meaning it can avoid countries where the credit cycle is not as interesting; its focus on the less crowded lower to mid-market, with deal size tickets of €12 million to €20 million typically; and its ability to prioritise either primary or secondary deals depending on the prevailing conditions.

Prieto declined to state Kartesia’s expected return figure, but said the firm tries to structure the contractual component in a similar way to pure direct lending while adding an equity component through warrants “so returns can potentially be materially higher than standard direct lending”.