Rothschild closes Five Arrows on €415m

The merchant bank’s Five Arrows Credit Solutions fund, which will make junior debt investments in Western Europe, exceeded its target.

Rothschild Merchant Banking has closed its Five Arrows Credit Solutions (FACS) fund on €415 million, the bank confirmed on Wednesday.

The junior debt fund, which closed above its €400 million target, received commitments from a variety of global investors including large institutional LPs, family offices and high net worth individuals.

FACS will provide unitranche, mezzanine and other junior debt instruments to European mid-market companies. Interestingly, it will provide debt both to sponsor-backed companies and directly to corporates in need of financing.

Rothschild said it would look at opportunities to acquire existing loans in the secondary market if attractive discounts were available from distressed sellers.

Credit veterans Martin Hook and Edouard Veber will manage the fund.

Marc-Olivier Laurent, head of Rothschild Merchant Banking, said the fund was the fourth Rothschild had raised that had exceeded its fundraising target.

“We believe the combination of a highly-experienced team together with a focused investment strategy targeting under-served European middle-market companies and the powerful synergies from the Rothschild Merchant Banking’s platform made FACS an appealing proposition to a diverse group of sophisticated international investors,” he added in the statement.