Proventus holds first close just shy of €1bn

The Swedish private debt fund manager has raised SKr8.8bn for its third private debt fund, and expects to hold a final close at the end of Q3.

Stockholm-based private debt firm Proventus Capital Partners has held a first close for its latest fund on SKr 8.8 billion (€977 million; $1.3 billion), the firm said in a statement on Wednesday.  

Founded in 2009 with €216 million of capital under management on its balance sheet, having previously been part of a family office, the firm launched Proventus Capital Partners II and IIB in 2011 and 2012 respectively, raising a combined SKr 7.4 billion. Both funds are now fully invested. 

The new fund, Proventus Capital Partners III, will remain open to further commitments until the end of September, the firm said.  

Daniel Sachs, chief executive of Proventus, spoke to Private Debt Investor about the fundraising. “It was important for us to broaden our LP base beyond the Nordics and bring in investors from our target markets of Northern and Western Europe too.” 

Investor sources said the fund's target is SKr 10 billion, with a hard-cap of Skr12.5 billion. The firm began the fundraising process in the first quarter, and is using Credit Suisse as a placement agent. 

In keeping with its predecessors, Fund III will provide debt financing to mid-cap companies in Northern Europe in need of capital for expansion, acquisition financing, restructuring or refinancing. The firm also makes investments in the primary and secondary high yield bond markets.  

“The majority of investments we make are non-sponsored, but we do look at sponsor-backed situations too. We are comfortable in, and like, quite complex situations. We focus on funding needs which aren’t suitable for bank funding.” Sachs said.“Most of deals are senior but we have the flexibility to invest in other debt instruments including second lien and mezzanine.”

The commitments garnered to date have swelled the firm’s AUM to about €2 billion, it said.  

Sachs added in the statement: “The market for direct lending, outside of the banking system or in combination with banks, is growing rapidly. In this segment, we aim to be a strategic financial partner to the companies we invest in, and not just a supplier of money, and to help them address funding needs that are not suitable for traditional sources of credit. Over time, the best return on our investments will come from assisting companies in making the most of their business opportunities.”