Proventus Capital Partners third fund reaches €1.3bn

The Swedish alternative lender broadened its investor base attracting LPs from outside its home region.

Proventus Capital Partners has closed its third credit fund at SEK12 billion (€1.3 billion; $1.6 billion) exceeding its SEK 10 billion target, according to a statement by the Swedish alternative lender.

The firm will continue its existing strategy of lending to companies in the Nordic region and other parts of North West Europe, including the UK, Ireland and German-speaking Europe, Daniel Sachs, chief executive of Proventus Capital Management told PDI. The regional split of its investments is around 50/50 between Nordic and other northern European countries, he added.

The new fund is larger than Proventus’ SEK 7.4 billion funds II and IIB and the firm sees scope for expansion of its activities, continued Sachs.

Less than 50 percent of Proventus’ borrowers are sponsor-backed, said Sachs, and the firm tends to do deals that require careful structuring and that other lenders find difficult to do.

Around 15 percent of the new five-year fund is invested so far, said Sachs, adding that the new fund has invested in six deals, five of which were unitranche loans.

As well as increasing its capital, Proventus Capital Partners III diversifies the geographic spread of the firm’s investor base with about one third of the public and corporate pension funds, insurance companies, foundations, endowments and family offices that invested coming from outside the Nordic region. The firm’s parent, Proventus AB is one of the largest investors in the fund, according to the statement.