Rothschild raises €1.4bn

The Paris-based fund manager has held a final close for its European debt fund.

Fund name: Five Arrows Debt Partners III

Amount raised: €1.4 billion

Stage of fundraising: Final close

Final/Interim close date: October 2021

Amount of transactions to date: 11

Rothschild Merchant Banking has announced the final close of Five Arrows Debt Partners III at €1.4 billion, according to a press release from the firm. The fund will invest into mid-market companies across Europe that are in the healthcare, TMT, business and financial services sectors. Fund III will be providing mezzanine, senior secured unitranche debt solutions as well as preferred equity. Transactions from the fund will also include direct lending solutions to early-stage businesses founded by entrepreneurs.

The Five Arrow fund series has raised just over €1 billion to date, with Five Arrows Direct Lending raising €655 million and Five Arrows Credit Solutions fund raising €416 million. Debt Partners III exceeded its undisclosed target size and attracted investments from a variety institution including pension funds, insurance companies and family offices.