European private credit “special situations”
European private credit manager Pemberton announced the final close of its latest private credit fund.
This fund is the fourth vintage of its “Strategic Capital” strategy.
Mainly senior – but can go down the capital structure
This strategy mainly invests in senior secured loans – but can also invest in subordinated loans, hold-co loans, and equity positions.
The opportunities that the strategy is intended to fund are deals with special complexity that need non-standard/non-cookie-cutter structuring and credit assessment.
Funding carve-outs, buy-and-builds, growth, recoveries
These types of deals can include carve-outs, buy-and-builds, growth capital and recovery capital. It is focused on primary deals – but can also invest in unfilled syndication processes and opportunistic secondary investments. It can invest in cross-border deals.
To companies with €15 million to €100 million EBITDA
It lends to European mid-market companies – with EBITDA generally between €15 million and €100 million
This strategy focuses on performing companies rather than stressed/distressed opportunities.
Investors included pension funds, insurance companies, family offices and financial services investors across Europe, North America, Asia and the Middle East.
Strong LP demand
Pemberton saw good demand for the fund – closing at more than its target of €2.5 billion to €3 billion.
“Despite the challenging market environment we continue to see strong demand from investors for flexible European direct lending strategies with strong downside protection. The successful close of our latest opportunistic direct lending fund reflects both the strength of our track record and the scale of the opportunity we continue to see across European private credit markets. We remain focused on providing bespoke capital solutions to high-quality borrowers with increasingly complex needs and long-term value to our LPs.”
Robin Challis, Partner at Pemberton
Pemberton growing as a sophisticated deal-type private credit manager
Pemberton’s total AUM is over $30 billion. Their other strategies include mid-market debt, senior loan, CLOs, SRTs, working capital solutions, NAV financing, and GP/LP capital.