Investec holds first close for PDF I on €165m

The Luxembourg-based discretionary direct lending fund has capital commitments of €165m, above its target of €100m. The limited partnership will be managed by the investment bank's growth and leverage finance team, headed by Callum Bell, head of lending at the firm.

"The powerful combination of balance sheet and fund capital will enable us to be even more relevant in the delivery of innovative finance solutions to growth-orientated businesses and private equity clients," said Bell in a statement.

The firm has originated more than €5bn in loans across 200 transactions in the last decade, according to a statement.

When asked whether there are barriers to entry to the fundraising market for debut or new strategies, Bell told Unquote: "The asset class is no longer nascent and, therefore, it is now critical for investors to show real and compelling differentiation. Without clear differentiation, in my view, there will likely be inertia to follow the herd with allocations in the established players. Investec is, by design, a differentiated provider of innovative financing solutions so our proposition was very well received by potential investors from the outset.

"At Investec, we have always prided ourselves on being a differentiated provider of financing solutions to growth businesses, their management teams and private equity owners. We have done this consistently and faithfully in the lower-mid-market and mid-market for more than 15 years."

With regard to its management, carry and hurdle rates, the fund has a market standard construct.

No placement agent was used for the fundraise.

Investors
The firm declined to comment on the fund's LPs.

Investments
The fund will provide senior secured debt, including unitranche, and subordinated debt for PE- and corporate-backed businesses generating €3-75m EBITDA. The fund has a primary focus on growth-orientated businesses in the lower end of that EBITDA range,; companies which, the bank believes, remain under-served by banks and fund providers.

Its geographical focus will be on companies based in the UK, Ireland, Benelux and DACH.

People
Investec – Callum Bell (head, lending).

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