Independent asset manager Pemberton has announced a first close for its European mid-market debt strategy at €547 million. The fund provides loans to private placements to mid-market companies with a turnover of €75 million to €1 billion in the UK and Europe, with a tilt to Germany, the UK and France. It has been backed by long-term institutional capital – Legal & General purchased a 40% stake in Pemberton in July 2014.
The fund aims to produce a strong quarterly income stream and attractive total returns for investors by financing mid-market companies through a diversified portfolio of bilateral, club and smaller syndicated senior and senior secured loans. Pemberton chairman, Keith Jones, commented: “With the balance sheet constraints faced by European banks, mid-market corporates are struggling to gain the funding they need to deliver business growth. Pemberton, with the backing of L&G, has built an on-the-ground presence in six European countries, which is providing us with a strong pipeline of lending opportunities.”