Arcmont closes European direct lending fund at $10.9 billion

Arcmont Asset Management closed its Direct Lending Fund IV and associated vehicles at €10 billion ($10.9 billion), the top end of its target range.

The fund represents one of the largest direct lending strategies ever raised in Europe, said the European private debt manager, an affiliate of Nuveen, in a news release. Its target range was €8 billion to €10 billion.

The direct lending strategy invests in first-lien senior and unitranche loans, as well as second-lien and subordinated loans. The fund has committed about 55% of its capital.

"During a time of macroeconomic uncertainty, private debt has demonstrated that it is a reliable and flexible source of capital for many companies and has benefited from the attractive elevated rates environment," said Anthony Fobel, CEO of Arcmont, in the news release.

Investors include the $3.7 billion Seattle City Employees' Retirement System and the £18 billion ($23 billion) West Yorkshire Pension Fund, Bradford, England.

Arcmont has raised more than €28 billion of investable capital across direct lending, senior loan and capital solutions strategies over more than 10 years, deploying more than €26 billion across over 350 transactions.