Shard Credit holds first close for GBP 75m debut venture debt fund

Venture Debt Fund I will invest in senior secured loans with equity warrants to VC-backed businesses working in SaaS and fintech.

It has so far collected GBP 16.5m in commitments, with the fund having a target size of GBP 75m and a hard cap of GBP 100m. It hopes to hold its final close by June 2023. 

It will target borrowers with annual recurring revenue of at least GBP 2m, with typical loan sizes ranging from GBP 2m-GBP 6m and maturities of up to five years. 

The lender said it would support companies that are finding it increasingly difficult to source long-term financing from traditional lenders. 

The fund has already made two investments with commitments of GBP 6.5m ahead of its first close. That includes the fund's first exit, PassFort, which generated an IRR of 249% in just six months. 

It aims to make 15 investments a year over its three-year investment period. 

Shard said that the venture lending market is in its infancy in the UK but has become a highly developed asset class in North America. 

The GP is currently investing from its debut direct lending fund Shard Credit Partners Fund I, which held its first close in October 2017 at GBP 90m. 

It plans to hold a first close on its second UK lower mid-market direct lending fund during Q4 2022, it said in a statement. 

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