Five Arrows, the alternative assets arm of Rothschild & Co, has announced the final close of its fourth vintage of its direct lending strategy, Five Arrows Debt Partners IV, with €2.4bn (£2bn) commitments.
This was well ahead of its €2bn target and more than 70 per cent larger than its €1.4bn predecessor fund.
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The fund provides bespoke and flexible financing solutions to European and North American mid-market companies. Investments are made across the capital structure, ranging from senior-secured unitranche loans to junior instruments such as second lien, mezzanine and PIK facilities.
The firm said that early deployment momentum has been strong and the fund is already more than 50 per cent committed into 19 transactions.
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The fundraising came from a globally diversified group of investors including insurance companies, pension funds, family offices and high net worth investors. Repeat investors represent 70 per cent of total commitments.
“We are delighted with the success of the FADP IV fundraising and are grateful for the trust and support from both our existing as well as new investors,” said Edouard Veber, co-managing partner of the fund.
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“We are particularly pleased to have such a significant proportion of repeat investors from our previous direct lending funds, as well as from across the broader Five Arrows platform.”
