Metric Capital Partners has reached its €850 million hard-cap for its third private debt fund and is expected to hold a formal close at the end of the month.
The fund has attracted pledges beyond the upper limit and is in the allocation process of who is included in the fund, according to a source familiar with the matter. Fundraising was completed within one month of marketing the strategy to investors, according to a statement first reported by Financial News and subsequently confirmed by the source.
Metric declined to comment.
Increasing interest in the firm’s third private debt vehicle follows the firm’s previous successes in the asset class. According to the source, the firm generated a gross realised IRR of 30 percent for the previous fund based on a strategy of investing in both senior and subordinated debt products, as well as preferred equity instruments in small and medium-sized companies across Europe.
The firm’s predecessor vehicle raised €465 million in 2014 and attracted investments from the North Carolina State Treasury, University of Michigan and Texas County and District Retirement System, according to PDI data. The debut fund raised €300 million on a final close in 2012.
Average ticket sizes are around €50 million, but there are no plans to significantly increase that size despite the increased capital, instead the appetite is towards completing more transactions, according to the source. Plans are in place to increase personnel at the fund in order to source more opportunities.
Established in 2011 by John Sinik, Peter Cornell, John Connolly and Giovanni Miele, the firm is headquartered in London and has completed transactions in 12 countries across Europe. Recent investments include Less Mess Storage, a self-storage firm based in Poland and the Czech Republic, McCurrach, a sales services company, and The Haciendas Company, a Spanish food and beverage company.