Ardian is seeking to provide alternative, flexible financing to mid-market businesses across Europe with the €5 billion ($5.1 billion) raise for its fifth-generation private credit platform.
The platform includes commitments from separately managed investor mandates, which will invest in parallel to the firm’s commingled fund. The assets were raised over the last 12 months and are €1 billion more than Ardian’s original target size. The commitments are 70% larger than the €3 billion the team raised in 2020.
The new fund is an Article 8 offering under the European Commission’s Sustainable Finance Disclosures Regulation (SFDR). Credit managers have been increasingly embracing ESG initiatives as of late and the designation means that an ESG evaluation of the targeted company is fully integrated in the investment process.
“Our long track record of investing through multiple market cycles, including in previous downturns, and delivering consistently strong returns has helped us close this landmark platform in less than a year,” said Mark Brenke, head of Ardian Private Credit, which has $10 billion in AUM. “The growth of Ardian Private Credit is testament to the efficacy of our disciplined investment strategy, which is highly selective in backing high-quality businesses. In the current environment, the strength of our offer, ongoing bank retrenchment and the resilience of the asset class continues to create opportunities and drive investor demand for exposure to private credit.”
Since 2005, Ardian Credit has executed over 150 deals, including 115 exits. The 24-strong investment team is based in London, with additional offices in Paris and Frankfurt. The firms said that the team’s multi-local approach provides a deeper, more diverse pool of investment opportunities.
The focus remains on European mid-market companies with particularly visible demand drivers and business models that are resilient through the cycle, according to Ardian.