CVC Capital Partners closed its third European direct lending fund, EUDL III, at €6.3 billion ($6.5 billion), the firm said in a news release Friday.
CVC Credit, the global credit management business, raised the funds, "a significant increase" over a previous European direct lending fund, according to the release.
EUDL III incorporates CVC's belief "that embedding environmental and social responsibility creates stronger and more resilient businesses," Chloe Sanders, head of ESG for CVC, said in the release. The fund provides loans with lower financing costs if borrowers deliver sustainable value, Ms. Sanders said.
CVC Credit invests in companies across the sub-investment grade corporate credit markets in Europe and North America. It manages more than €35 billion between performing credit and private credit businesses.
The private credit platform, with more than €10 billion, includes European direct lending and capital solutions strategies, a spokesman said in an email. CVC's European direct lending strategy focuses on established European medium and large companies and the senior secured piece of the capital structure, with loans directly sourced through the CVC network, according to its website.
The European private credit market is undergoing profound secular growth and many European financial sponsors have been impacted by reduced bank lending, CVC partners and co-heads of private credit Andrew Davies and John Empson said in the release.