Trea spins out credit arm as Zenon Asset Management

The newly created firm will continue to invest in sponsorless SMEs across the Iberian peninsula.

The management team of Trea Direct Lending have spun out from parent company Trea Asset Management.

The team, which made up the private debt operations of Trea, will rebrand as Zenon Asset Management and will continue its investment strategy of providing senior debt for small and mid-sized companies in Spain and Portugal.

The new firm will manage its existing two currently active funds. Fund II has €130 million of assets and is already fully invested, while Fund III has more than €300 million of capital and has already deployed €250 million. Its first fund was fully divested last year, delivering a net IRR of 8.5 percent.

Zenon will focus on investing in mainly sponsorless transactions for family-owned businesses. To date it has made 45 investments in 35 companies across a range of sectors. Its loans are primarily used to finance organic growth and acquisitions and occasionally to refinance existing debt.