ARCMONT COMPLETES €10BN FUNDRAISE FOR ITS LATEST EUROPEAN DIRECT LENDING FUND
Arcmont’s European Direct Lending IV strategy attracts strong global investor demand, achieving top end of €8-10bn target range
LONDON, 23 January 2024: Arcmont Asset Management Limited (“Arcmont”), a leading European private debt asset management firm and affiliate of Nuveen, today announces the final closing of Direct Lending Fund IV and associated vehicles (“DLF IV”) attracting total investable capital of €10 billion. DLF IV now represents one of the largest Direct Lending funds ever raised in Europe and the final close size is at the high end of Arcmont’s original target range of €8-10bn.
Launched in 2011, Arcmont’s Direct Lending strategy invests in a defensive, diversified portfolio of mainly first lien senior and unitranche loans, as well as second lien and subordinated loans. Arcmont can also hold equity or warrant positions alongside those loans, providing upside potential through equity participation in select situations.
To date, Direct Lending Fund IV has committed c.55% of its capital. This reflects what we see as a robust market opportunity for tailored private debt financing solutions provided at scale, and the team’s experience in meeting the needs of leading private equity sponsors and blue-chip companies across different European market.
Over more than a decade, the firm has raised more than €28 billion of investable capital across its Direct Lending, Senior Loan and Capital Solutions strategies and has deployed over €26 billion across more than 350 transactions. Arcmont’s team continue to see a strong pipeline of high-quality deal flow, and the closing of DLF IV provides Arcmont with significant dry powder to pursue these opportunities.
Anthony Fobel, CEO of Arcmont Asset Management, said: “Direct lending has an essential role to play in providing financing across the European market. During a time of macroeconomic uncertainty, private debt has demonstrated that it is a reliable and flexible source of capital for many companies and has benefited from the attractive elevated rates environment. Arcmont’s pan-European network, size and scale means we can deploy significant amounts of capital to companies in times of market opportunity and challenge.
We would like to thank new and returning investors globally, who have seen the attractiveness of private debt in this environment and shown their strong support for our latest Direct Lending fund. Our track record, size, scale and distinct investment strategy, backed by the global network of Nuveen, enables us to be a lender and a partner of choice to many medium and large businesses throughout Europe.”
William Huffman, Head of Nuveen Equities and Fixed Income commented: “The success of Arcmont’s fundraise for Direct Lending Fund IV is a reflection of the maturity of the private debt asset class and its establishment as a mainstream source of finance to businesses. It is also a testament to the strength of the Arcmont business and, one year after Nuveen acquiring a majority interest in Arcmont, we could not be more delighted to have Arcmont as part of the Nuveen group. Together with Churchill Asset Management, Arcmont’s sister company in the US, Nuveen Private Capital, now manages a combined AUM of €73 billion, making it one of the largest providers of private debt and equity solutions to businesses globally. We are looking forward to the continuing expansion of our private capital capabilities in 2024 with new and innovative offerings to our global investors.