Arcmont Asset Management has raised €1.5bn (£1.3bn) for its Capital Solutions Fund II, nearly double that of its predecessor.
The fund will focus on more complex credits, junior capital and market dislocations that have higher return potential. It has attracted interest from pension funds, endowments, insurance companies, family offices and sovereign wealth funds from North America, Europe and Asia.
“This is a very pleasing result as we continue to develop the track record and scale of capital solutions at Arcmont,” said David Brooks, partner and Arcmont’s co-head of capital solutions. “Given the attractive risk-return potential of the strategy, we were able to attract a large number of new investors while maintaining the support of our existing investors from Capital Solutions Fund I,” he added.
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Arcmont, an affiliate of investment firm Nuveen, launched its capital solutions strategy in 2020 and considers it complementary to its flagship direct lending segment, providing a broad range of financing solutions for Europe’s leading private equity sponsors.
Capital Solutions II is already 55 per cent committed, consisting of more than 20 investments. This includes the provision of constructive refinancing and liquidity solutions where debt is close to maturity, complex private lending to healthy companies in cyclical sectors, junior capital and purchases of secondary debt.
“An increasingly complex market and dealmaking environment mean that sponsors are turning to our flexible financing solutions to continue to drive growth across the European middle market,” said Alice Cavalier, partner and Arcmont’s co-head of capital solutions.
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Since its launch, the capital solutions strategy has invested nearly €2bn (£1.74bn) across more than 50 transactions.
“The growth of the capital solutions strategy is evidence of the strength and depth of the Arcmont platform across European private lending,” said Anthony Fobel, chief executive of Arcmont.
