Fixed income specialist BlueBay Asset Management has announced the final close for its second direct lending fund, having taken over €2 billion in assets in less than a year.
BlueBay said that over 80% of investors in its first private debt fund committed to the second fund, and it now manages over €4 billion in private debt assets. The second fund will provide financing solutions to medium-sized European business, filling the funding gap left by banks. It will invest in senior secured loans and selected subordinated loans, and will have the ability to write tickets of €200 million or more. BlueBay head of private debt, Antony Frobel, commented: “We are continuing to experience a structural shift in the financing markets in Europe away from traditional bank sources with the rapidly growing acceptance of private debt investors as alternative sources of finance to small and medium-sized businesses. This structural shift has been accompanied by a significant increase in demand for debt finance from businesses, driven by a rapid increase in M&A activity and general recovery across corporate Europe.”