Fidelity markets EUR 1bn-plus debut direct lending fund

The asset manager is in discussions with prospective LPs about securing commitments for its Fidelity Direct Lending Fund, which was registered last December with the US Securities and Exchange Commission (SEC), three sources familiar with the matter said.

Fidelity’s inaugural European direct lending strategy will focus on providing senior secured loans, including unitranches, to mid-market private equity-backed companies, one of the sources noted.

Before embarking on the fundraise, Fidelity hired 12 new members of staff in May to bolster its European private credit operation. Of the 12, at least four people – Marc Preiser, Raphael Charon, Tim Johnston and Ben Forman – work within its direct lending division, according to a press release issued by Fidelity.

Fidelity is pushing deeper into private credit alongside a number of rival market entrants, including Pictet, Morgan Stanley and Barclays, all of which are in the process of raising funds for their maiden European direct lending strategies.

Meanwhile, market incumbents ICG and Ares are marketing jumbo fundraises, targeting more than EUR 10bn each in fresh capital to expand their war chests for European direct lending transactions at a time when deal-flow is being dampened by unfavourable macroeconomic conditions and rising costs of capital.

Fidelity declined to comment.

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• Topics
• Debt
• Fundraising
• Benelux
• CEE
• DACH
• Southern Europe
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• credit