Alcentra closes €850 million mid-market European debt fund

Alcentra, a specialist sub investment-grade manager within BNY Mellon, has carried out the final close of the Alcentra European Direct Lending Fund, with investor commitments of €850 million.

The fund will provide debt finance for middle market companies in Europe, and it brings Alcentra’s committed capital for the strategy to €1.5 billion. Alcentra managing director and head of European direct lending, Graeme Delaney-Smith, said: “Direct lending is a large, attractive, long-term opportunity given the balance sheet constraints of European banks and the historical lack of nonbank lenders.”

Alcentra has been involved in financing middle market businesses in Europe since its launch in 2003, and in 2012 it was among the first investment managers to participate in HM Treasury’s Business Finance Partnership initiative.