Santander Alternative Investments has raised €150m (£128.1m) at the first close of its second European asset-backed corporate lending fund.
The Asset Backed Corporate Lending Fund II (ABCL II) received backing from investors including Santander Group, the European Investment Fund and other institutional investors, the alternatives firm said.
The fund is targeting €500m at final close, which is scheduled for June 2027, and provides financing to small and medium-sized companies across Europe.
According to Santander Alternative Investments, it has already identified deployment opportunities and expects to make near-term commitments in Spain, Italy, Germany and France.
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Santander Alternative Investments is part of Santander Asset Management, which oversees €275bn in assets and invests across private debt, infrastructure and energy, as well as real estate.
Santander Asset Management is a Spanish-based asset manager and a subsidiary of Santander Group.
The fundraising comes as some have suggested that European private credit has seen significant growth since 2025 and into 2026, driven in part by macroeconomic factors. One asset manager said investor interest has increased since US President Donald Trump announced tariffs.
Alongside this, the US private credit market’s heavy exposure to software companies and concerns that advances in artificial intelligence could disrupt the sector, already placing pressure on semi-liquid funds, have also prompted investors to increase allocations to European private credit.
Hayfin raised more than €15bn for its fifth direct lending fund this month and attributed part of the fundraising success to investors seeking “conservative fund structures” in the wake of strains in semi-liquid US private credit funds.
