Muzinich holds first close on €180m

The firm’s latest debt fund will have a pan-European mandate with the firm planning an additional European office opening.

Muzinich & Co, the New York-based asset manager, has held a first close on its pan-European debt fund, according to a company announcement. The fund has closed on €180 million.

The fund is planning on lending to businesses in Western Europe with EBITDA between €2 million and €20 million. Loans are expected to have terms between five and eight years. The fund has an eight-year investment term.

The fund is targeting raising €500 million in total, a spokesman confirmed. He added the firm had started speaking with potential investors at the end of 2016. It has not started investing committed capital yet.

Muzinich has offices across Western Europe, with personnel based in the UK, France, Italy, Spain and Germany. It is also in the process of hiring debt professionals in Ireland and setting up a Dublin office. The spokesman noted the firm is interviewing for hires presently, with a view to opening the office within the next few months. Three or four hires are expected to be made in total.

The firm’s previous European-focused debt funds have all had either a specific country or regional focus. Between 2014 and 2015 Muzinich introduced funds focusing on France, Italy, the UK and the Iberian region. 

Muzinich timeline

According to PDI data, only one of these has reached a final close – the UK-focused fund on £185 million (€214 million; $240 million).

Muzinich had been active in Europe prior to the launching of these funds. The firm opened a London office in 1999 and introduced a European high-yield offering in 2000.