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Laxman Pai, Opalesque Asia: Five Arrows, the alternative assets arm of Rothschild & Co., has raised €2.4 billion ($2.8 billion) for its latest direct lending vehicle, marking a 70% increase over its predecessor fund as investor demand for private credit continues to grow.
The new fund, Five Arrows Debt Partners IV (FADP IV), closed above its €2 billion target, bringing the firm's total assets under management to more than €29 billion.
Backers include insurance companies, pension funds, family offices, and high-net-worth individuals, with repeat investors accounting for around 70% of commitments. Rothschild & Co. and the fund's executives also committed capital.
The vehicle will provide bespoke financing to mid-market companies in Europe and North America, ranging from senior-secured unitranche loans to mezzanine, second-lien, and preferred equity structures. While the fund often backs private equity sponsors, it also lends directly to family- and entrepreneur-owned businesses.
Deployment is already underway, with more than half of the fund committed across 19 transactions. Deals to date have been concentrated in sectors including data, software, IT services, healthcare, education, and business services - areas Five Arrows has focused on since launching its direct lending strategy in 2012.
FADP IV follows Five Arrows Debt Partners III and other earlier lending strategies, managed by a 26-strong team based across London, Paris, New York, a...................... To view our full article Click here
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