European mid-market lender Kartesia has reached a final close of €507 million on Kartesia Credit Opportunity I. The firm beat its target of €400 million as well as exceeding the planned €500 million hard-cap, Laurent Bouvier, one of the firm’s four managing partners, told PDI.
The investor breakdown by type was 40.4 percent institutions, affiliated institutions and management committed 44.7 percent, 5.3 percent came from fund of funds, high net worth individuals contributed 3.3 percent while private banks made up the remaining 6.3 percent. The geographic break-down was 36.5 percent French investors with other EU investors making up the balance, Bouvier said.
Of the firm’s existing investors in its Altercap I and II funds, around 75 percent came into the new debt fund.
Kartesia’s new credit fund is already 33 percent invested and focuses on lending to companies with EBITDA ranging from €5 million to €50 million. The best current opportunities are in the lower end of that scale for borrowers of between €5 million to €15 million in EBITDA.
The fund has the option to invest across the capital structure but will target average weightings of around 65 percent senior debt, 25 percent mezzanine and 10 percent for other instruments, added Bouvier. The firm also invests in CLOs and the secondary leveraged loan market and lends tickets of between €10 million and €50 million, with the ability to take and hold up to €100 million via co-investment.
On the origination side, the firm can work as both sole lender and as part of a club. It has made significant debt purchases encompassing around 45 different borrowers over the past six years and so has some relationships in place.
Kartesia’s cornerstone investor is Sienna Capital, the alternative investment platform controlled by Groupe Bruxelles Lambert, a listed company majority owned by the Belgian Frère family and a Canadian family, Desmarais.