La Banque Postale Asset Management (LBPAM), the investment arm of the French bank, has held a first close on its corporate debt fund after collecting €240 million in commitments.
The vehicle targets senior debt investments in mid-cap businesses with a predominant focus on France, although it is not restricted to the country and is open to companies across Western Europe.
Launched following the merger with asset manager Federis in April, it is the fifth incarnation of a private debt investment vehicle and the first under the LBPAM name. Previous vehicles focused on the senior space, while another specialised in investments in mechanical engineering.
The firm has begun investing the vehicle and a number of deals are expected to be completed in the new year. The strategy aims for tickets sizes of around €15 million to €20 million in companies with a turnover of between €150 million and €1 billion.
A second close on the fund is expected to take place in the first half of 2017.
Rene Kassis, head of private debt at LBPAM, told PDI that he is optimistic about the opportunities in private credit in 2017. “The trend is that corporates are opening up more and more to alternative forms of financing. There is an ecosystem for these financing schemes developing as investors continue to switch to the asset class.”
LBPAM held a second close on both its real estate and infrastructure debt fund platforms after raising €400 million and €413 million respectively since they were launched in April.