Muzinich holds third close for second European debt fund

Harriet Matthews
19 April 2021

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Muzinich & Co has held a third close for Muzinich Pan-European Private Debt Fund II on €342m.

Muzinich Pan-European Private Debt Fund II held a first close in September 2020 on €210m.

The vehicle's predecessor held a final close in 2018 on €706.5m. The pan-European debt platform was first launched in 2017.

New York-headquartered Muzinich has raised funds for a range of European strategies, including a UK-focused fund and a vehicle providing loans in Iberia. The firm has region-focused teams that have managed the deployment of its country-focused funds since 2014.

The firm opened offices in Sydney, Hong Kong and Florida in 2020, and expanded its private debt team in the Asia-Pacific region.

As of December 2020, the firm had 37 investment professionals in its private debt team, according to its website.

Investors
Muzinich's previous direct lending funds have attracted commitments from a range of institutional investors, including the European Investment Fund and various pension funds. According to Unquote Data, at its interim close in May 2018, Muzinich's previous pan-European vehicle had commitments from 8-10 LPs, including family offices and insurance companies.

Investments
The fund will provide loans for lower-mid-market companies in western Europe with EBITDA of €5-25m, targeting deals in the €10-50m range. The fund will also provide financing to businesses aiming to pursue acquisitive growth strategies.

The fund's predecessor vehicle had an investment period of eight years and its loans were expected to have a maturity of five to eight years, according to Unquote Data.

Deals backed by Muzinich in recent months include Nord Holding's acquisition of Germany-based orthopaedic surgery implant producer HG Medical, as well as Bridgepoint's acquisition of UK-based IDHL, a company that supports businesses with their digital transformation.

People
Muzinich & Co – Kirsten Bode, Rafael Torres (co-heads of private debt, pan-Europe).