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Eurazeo to launch personal debt fund for retail traders in second half of 2024

Eurazeo is launching a non-public debt fund that shall be open to retail traders within the second half of 2024.

The French funding group has been closely energetic within the personal debt area of late, with the asset class now accounting for greater than 20 per cent of its belongings beneath administration.

Agathe Bubbe, director, wealth options inside Eurazeo’s funding companions crew, instructed Various Credit score Investor that the agency has “very sturdy ambitions for the brand new fund” which shall be much less diversified than its final retail providing.

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“We launched our first evergreen fund in France, this fund works properly and we’re actually intent on creating on this sector,” she mentioned. “We’re launching one other long-term fund within the personal debt area within the second half of 2024.”

Bubbe mentioned that the primary fund was a mixture of hybrid belongings, comprising personal debt and secondaries, together with fairness investments, and attracted numerous curiosity all through Europe and globally.

“We have been a pioneer in Europe after we first launched the fund in 2018 and we thought it was essential to have that blend of technique as a result of market surroundings and diversification,” she added. “Nonetheless, as Eurazeo grew we now handle greater than €7bn of personal debt, specialised within the decrease mid-market area. We consider that we now have sufficient diversification, deal move and alternatives, whereas the present market surroundings permits us to be assured in launching a brand new fund.”

Bubbe declined to offer a fundraising goal for the brand new fund however famous that the agency’s final personal debt programme raised €1bn (£854,000) from personal purchasers throughout Europe, “regardless of sturdy regulatory protectionism beforehand for retail entry to non-public debt”.

Learn extra: Non-public debt traders anticipate rise in dealmaking and fundraising

The personal debt market has attracted a flurry of capital in recent times, as personal fairness homes and asset managers faucet into the sector looking for yield in a high-interest-rate surroundings.

This has resulted in intensifying competitors for offers, however Bubbe mentioned that Eurazeo is properly positioned to benefit from alternatives within the decrease mid-market section.

“We’ve a really sturdy deal move, complemented by our positioning within the decrease mid-market section, with very sturdy deployment capabilities, our historic relationships with GPs in Europe and excellent relations with firms we’ve financed thus far,” she mentioned.

Final November, Eurazeo closed its sixth direct lending fund, elevating €2.3bn in capital, surpassing its preliminary goal of €2bn.

The fund raised €900m from retail traders, taking the entire scale of the group’s personal debt programme to €3.2bn.



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