RiverRock European Capital Partners is nearing a final close on its second European direct lending fund, PDI understands.
The fund has a target of €300 million and a hard-cap of €375 million. “It could well be that they get to the hard-cap,” a market source commented.
London-based RiverRock European Capital Partners will use the capital to make direct loans to small and medium-sized enterprises (SMEs) in Europe. The firm’s strength lies in lending to German SMEs in particular.
Campbell Lutyens is assisting RiverRock as placement agent, a source said.
Both RiverRock and Campbell Lutyens declined to comment.
The University of Michigan’s board of regents made a €35 million commitment from its long term portfolio to the RiverRock European Opportunity Fund II in July 2015. The investment focus of the fund will be on asset rich and cash flow generating corporations in defensive industry sectors primarily based in Germany and other Northern European countries, according to documents published by the investor.
Jason Carley (pictured) is the chief investment officer and portfolio manager on the firm’s direct lending vehicles, European Opportunities Fund I and II. Launched in 2011, the fund had a target of €250 million and collected €169 million by July 2012, according to PDI Research & Analytics. European family offices, the German Ministry of Economics and Technology, LfAFörderbank Bayern and the European Investment Fund, all committed to the first fund.
EOF I typically deployed between €5 million and €15 million per investment, according to a statement at the time.
The asset manager targets absolute returns of at least 10 percent per annum for its credit strategies. The firm oversees a range of other strategies such as mezzanine capital for German commercial real estate and has a European Real Estate Fund. RiverRock also provides exposure to US equities using tactical allocation and credit long short.
The average annualised return on money raised for European hedge funds and other types of leverage finance vehicles has been on average over 20 percent since May 2009, according to its website.
RiverRock also has a financial advisory team and selectively raises money for external managers.
In 2013, the firm acquired a controlling stake in Chenavari Financial Advisors and renamed the business RiverRock Securities (RRS). RRS has raised $1.5 billion of long-only mandates and over $300 million in hedge fund money for credit managers since its initial founding in 2009. Since 2011, it has also traded more than $2 billion of distressed paper including Lehman claims. The firm has offices in London and Paris.