Eurazeo is planning to launch a new retail fund and its fourth asset-backed financing (ABF) product in the coming months.
The private markets asset manager already has a large retail fund which is structured and based in France. However, Nicolas Nedelec, partner, private debt at Eurazeo, told Alternative Credit Investor that the firm is currently setting up a new European retail fund for next year which will be domiciled in Luxembourg. This will mean that the new fund is open to investors from across Europe, and not just France.
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“We’ve got a fund in France already where we’ve raised over €1bn (£830m) and that is essentially co-investing the flagship fund, giving mainstream investors access to direct lending across Europe,” said Nedelec.
“And we’ll be setting the same thing up for the rest of Europe, relying on the network of distributors in each single country, which are generally wealth managers or insurance companies.”
Nedelec added that Eurazeo is also raising for its fourth ABF fund, following the success of its maritime transition fund.
Read more: ABF an “evolutionary step” for private debt investors
“We’re actually raising our fourth ABF fund,” said Nedelec. “ABF is something we’ve been doing for five to 10 years now already. It is a big thing in the US, but it’s not such a big thing in Europe because it’s still quite fragmented. And also the European banks have stayed pretty bullish in this area.
“Banks are now ceding ground, but at varying paces across different countries and industries, so you need to be very cautious about what you do.”
In 2023, Eurazeo partnered with Société Générale on the launch of the Eurazeo Maritime Transition Fund, an asset-backed strategy which is dedicated to supporting the transition towards a more sustainable maritime sector.
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