- Advertisement -
- Advertisement -

Related

Fundraising in Tough Times

Industry Report

- Advertisement -

Stockholm (HedgeNordic) – Whereas the coronavirus pandemic has impacted private debt fundraising, Danish sub-investment grade credit manager Capital Four has successfully attracted capital for the first close and launch of its latest private debt fund, Private Debt III – Senior Lending. Capital Four has completed the first closing with commitments of more than €500 million, more than half of the fund’s target size of €1 billion.

According to a press release by Capital Four, commitments came from both new and existing institutional investors primarily from Europe. Mads Skaaning, Head of Fixed Income at PKA, views the strategy as a supplement to the Danish pension fund’s existing exposures. “For us, it is natural to have an allocation to the strong Nordic economy and credit culture,” says Skaaning. “Capital Four can, due to their local presence, specialized credit-focus and heritage, provide us with Direct Lending exposure to a growing Nordic market, which until now have been less expressed in our Private Debt allocation,” he adds.

“Capital Four can, due to their local presence, specialized credit-focus and heritage, provide us with Direct Lending exposure to a growing Nordic market, which until now have been less expressed in our Private Debt allocation.”

Capital Four’s Senior Lending fund will provide first-lien senior secured bilateral loans with maintenance covenants to performing middle-market companies from the Nordic, DACH and Benelux regions. According to the press release, “the high level of interest from institutional clients underlines the relevance of the strategy that can give low-risk exposure and also diversify clients’ direct lending portfolios by giving senior loan exposure to the Nordic region.”

PitchBook’s latest Global Private Debt report indicates that the coronavirus pandemic impacted private debt fundraising in the first half of 2020. According to the report, 56 vehicles raised $47.8 billion in the first half of the year, down from $88.6 billion collected in the same period of last year. In terms of capital raised, global direct lending is suffering its slowest year since 2015, with fundraising reaching $18.2 billion across 17 vehicles. In the first half of last year, 29 funds raised $52.6 billion.

Distressed debt and special situations funds, meanwhile, accounted for about 30 percent of capital raised in the first half of 2020, up from 19.7 percent for the entirety of 2019, according to PitchBook. “These opportunistic vehicles will likely be much larger than their predecessors, reflecting both the growth in private market assets as well as the magnitude of opportunity created by recent market shocks,” Dylan Cox, a PitchBook analyst, said in the report.

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Formue Highlights Private Credit’s Role in New Economic Era

Nordic wealth manager Formue has long prided itself on delivering institutional-grade investment solutions to high-net-worth individuals. As global economic conditions shift, Formue sees an important role...

Chelonia Select Builds on Solid 2024

Stock-picking hedge fund Chelonia Select is off to a strong start in 2025 with an 8.3 percent gain through the end of May, building...

CABA Capital Expands the Flex Series

Danish fixed-income boutique CABA Capital has launched the third vintage of its leveraged, closed-end fixed income strategy: CABA Flex3. The fund aims to deliver...

Aegon AM Launches Capital Call Finance Fund

Aegon Asset Management has launched the Aegon Capital Call Finance Fund, providing institutional investors with access to the capital call finance market – a...

Evli’s Co-Investment Strategy: Opening the Door to Direct Private Equity Deals

Co-investing alongside private equity funds has become increasingly important for institutional investors seeking greater control, reduced fees, and selective deal exposure. Once reserved for...

From Loans to Layers: Navigating the CLO Capital Stack

Collateralized Loan Obligations (CLOs) play an important role in credit markets by bridging the capital needs of corporate borrowers with the return objectives of...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.