Pemberton has held a first close of its European senior loan strategy on €900 million according to sources close to the situation.
It is thought the fund is seeking a total of up to €2.5 billion to invest in a defensive senior debt strategy, investing in larger companies seeking lower levels of leverage with a more defensive capital structure.
The strategy was reportedly developed after inquiries from institutional investors across Europe, the Middle East and Asia-Pacific for a more defensive European mid-market investment opportunity.
This segment of the market is typically not targeted by other direct lending funds but Pemberton is thought to be targeting opportunities created by the covid-19 pandemic, which has made it harder for businesses to access funding from traditional sources due to shrinking bank appetite for term financing of mid-market European borrowers.
The European senior loan strategy at Pemberton is being managed by Thomas Duetoft and Andrew Benson and is the firm’s third strategy, complementing its mid-market and credit opportunities lines of funds.
Pemberton declined to comment.