Pemberton raises €1bn for its strategic credit opportunities vehicle

The vehicle will be targeting European mid-market companies that have between €10m and €100m in EBITDA.

Pemberton Capital Advisors has held a final close on its debut junior debt vehicle.

The London-based firm announced today that it had raised €1 billion for its Strategic Credit Opportunities Fund. The vehicle is looking to lend junior capital to non-investment grade performing companies that require finance for acquisitions or growth. The fund will also deploy flexible first-lien debt products for companies looking to “get back into growth”.

The vehicle will target European mid-market companies with between €10 million and €100 million of EBITDA. A source familiar with the situation told Private Debt Investor that the fund is looking to deploy loans with an average size of between €50 million and €75 million.

Pemberton declined to comment.

The source added that the fund gave limited partners the option to invest in a product that offers a different risk and reward opportunity while still being linked to the firm’s senior-secured products.

The vehicle, which began fundraising in 2017, is already more than 50 percent deployed with investments across the UK, Germany, France, Spain and the Netherlands.

It received capital from approximately 30 investors, including pension funds, insurance companies, financial institutions and high-net-worth individuals. The source added that more than half of the fund’s investors are based in the US. The San Francisco Employees’ Retirement System made a $60 million commitment to the vehicle.

The fund will be managed by Ben Gulliver, a strategic credit portfolio manager, and portfolio manager Robin Challis.

Pemberton is an independent asset manager backed by insurance company Legal & General Group. It has more than $3 billion in assets under management.