Sixth Street hits hard cap with €3.75bn European lending fund

Sixth Street has raised €3.75bn (£3.2bn) at the final close of its third European specialty lending fund, hitting its hard cap.

The US investment firm said the final close of Sixth Street Specialty Lending Europe III is expected to be approximately €7bn, including anticipated leverage.

It is the firm’s largest dedicated vehicle focused on providing financing solutions to companies across Europe.

“We are grateful to our long-term capital partners for their trust and commitment to our strategy as we continue to support European businesses at any point in their lifecycle, offering customised capital solutions delivered with speed and certainty,” said Michael Griffin, co-head of Sixth Street global direct lending and head of Europe direct lending. “This is a significant milestone for our European direct lending business and a testament to the firm’s intentional growth in the region.”

Overall, Sixth Street’s European direct lending platform has completed more than 75 transactions across the UK and Europe, providing funding from €30m to more than €2bn. It forms part of the firm’s global platform, which has more than $125bn in assets under management.

Griffin added: “Our European business is significantly bolstered by the breadth and depth of Sixth Street’s global platform and the deep expertise of our dedicated sector teams.”