CVC Credit, the €35 billion ($37 billion) credit business of CVC, announced the closing of its third European Direct Lending Fund.
EUDL III attracted €6.3 billion, a significant larger sum than was attracted by the firm’s prior European Direct Lending fund. Overall, CVC’s European lending platform now totals €10 billion.
“The European private credit market is undergoing profound secular growth and with the support of the CVC Network, we are ideally placed to capitalize on that opportunity,” said Andrew Davies, partner and co-head of private credit at CVC.
The EUDL III portfolio transactions include: Advent’s buyout of IRCA; Astorg’s investment in OPEN Health; Cinven’s purchase of Euro Techno Com; Partners Group’s acquisition of Version I; and TPG’s partnership with DOC Generici.
“CVC Credit is incredibly focused on delivering attractive financing solutions for European financial sponsors, many of whom have been impacted by the pull back in bank lending,” said John Empson, partner and co-head of private credit.
Interestingly, the fund is also focused on ESG in a bid to create stronger and more resilient businesses, according to Chloe Sanders, head of ESG at CVC. The team is focused on providing loans with lower financing costs, if borrowers deliver sustainable value.
“We believe this is a great way of encouraging businesses to embrace change,” she added.
