ICG holds €5.2bn final close for direct lending fund

The fundraise was significantly oversubscribed with €4.2bn of commitments from new investors, according to the GP.

The vehicle will follow the strategy of its predecessor fund and make senior secured loans to European mid-market companies. ICG's second senior debt fund held a final close in July 2015 and is currently 95% invested across 40 deals.

The larger fund size will enable larger ticket sizes, allowing ICG to lend to companies that it said are not currently served by other private debt providers.

It has a term of seven years with a four-year investment period and targets a gross IRR of 8-10%. 

Investors
ICG described its investor base as "increasingly diversified" in a press release and said the new fund had a particularly high level of interest from European pension funds. A large majority (€4.2bn) of the commitments to the latest fund came from new investors.

Investments
The vehicle will invest primarily in directly originated senior secured loans to European mid-market corporate borrowers. It expects to make around 30-40 investments with values between €100-250m. Approximately 70% will be sponsored deals. 

People
Intermediate Capital Group – Max Mitchell (head of senior direct lending Europe); Benoit Durteste (CEO).

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• Topics
• Funds
• Debt
• Senior debt
• Intermediate Capital Group