Rantum raises €300m for German Mittelstand loans

The fund manager has raised more than double its first fund to invest exclusively in the German mid-market.

Rantum Capital Partners has raised €300 million for its second private debt fund focused on sponsorless deals in Germany.

The Frankfurt-based debt manager announced it has held a first close on Rantum Private Debt Fund II at more than double the €125 million raised for its first fund.

Fund II will continue the previous strategy of investing in subordinated, sponsorless corporate loans for German Mittelstand companies owned by families or entrepreneurs.

Rantum’s first fund fully invested €125 million between 2015 and 2017 and has financed a variety of German companies including those in the pharmaceutical, food and industrial sectors. It said all companies are currently performing to or above plan.

The second fund has raised capital from existing LPs as well as raising new capital from pension funds, insurance companies and endowments. While the majority of the capital came from Germany, the fund also secured capital from LPs in France, the UK and the Nordic countries.

The new fund will adopt the same strategy as Fund I, focusing on providing loans to profitable Mittelstand companies that require capital for growth capex or to finance special events such as generational handovers, add-on acquisitions or buyouts of minority shareholders.

Rantum will leverage its network of its 16 shareholders, who are all successful entrepreneurs or former blue-chip executives with experience in specific industries. Rantum said its “industrial partners” are all invested in its funds and help it identify transaction opportunities and support deals with their industrial experience and due diligence.