Private equity firm, Five Arrows, brings a close to its fourth direct lending fund, raising a total of €2.4 billion in investments.
In the realm of private credit, two notable events have taken place recently. Sienna Investment Managers (Sienna IM) and Arch have each secured substantial funding for their respective defense-focused strategies.
Sienna IM's defense-focused private credit strategy has reached a €270m first close. This strategy provides bespoke and flexible financing solutions to mid-market companies in Europe and North America, with investments ranging from senior-secured unitranche loans to junior instruments such as second lien, mezzanine, and PIK facilities. Edouard Veber, co-managing partner of the fund, expressed delight with the success of the FADP IV fundraising.
On the other hand, Arch has secured $52m in its Series B funding round. However, the identities of the investors in this round remain undisclosed. It is not clear whether repeat investors were involved in this round.
Meanwhile, Five Arrows Debt Partners IV, the direct lending strategy of Five Arrows (the alternative assets arm of Rothschild & Co), has reached a final close with €2.4bn (£2bn) commitments. This fund is more than 70% larger than its predecessor fund, €1.4bn, and has already attracted a globally diversified group of investors, including insurance companies, pension funds, family offices, and high net worth investors.
The FADP IV fund has been successful in its repayments, with essential recurring investors accounting for 70% of total turnover. These investors are primarily institutional investors such as pension funds, insurance companies, and sovereign wealth funds.
Both Sienna IM's defense-focused private credit strategy and Arch's Series B funding round are separate and unrelated events. It's worth noting that the defense-focused private credit strategy of Sienna IM is not a direct lending strategy of Five Arrows Debt Partners IV.
The fundraising for Sienna IM's defense-focused private credit strategy surpassed its target, and the fund is already more than 50% committed into 19 transactions, indicating strong early deployment momentum. This underscores the growing interest in defense-focused investments and the confidence investors have in Sienna IM's strategy.
These developments highlight the ongoing interest in private credit strategies, particularly those with a focus on defense, and the continued support from institutional and individual investors.
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