CVC Credit, the global credit management subsidiary of the investment firm CVC, has recently announced the final closing of its fourth European Direct Lending fund, referred to as EUDL IV. This fund has raised €10.4 billion, which will be deployed across various European Direct Lending opportunities. And this new funding represents a substantial increase compared to the fundraising efforts of CVC’s prior European Direct Lending funds, which collected €6.3 billion in 2022 and €1.3 billion in 2020.
The expansion of CVC’s European Direct Lending platform is strongly supported by the company’s extensive local relationships across its network, which spans sixteen offices throughout Europe. CVC has maintained a focus on the European market for over four decades, allowing it to cultivate deep industry insights and connections that enhance its investment capabilities.
To date, EUDL IV has made remarkable progress by committing to over 30 investments in a variety of sectors. Some of the notable recent transactions executed by EUDL IV include KKR’s acquisition of Immedica Pharma, the strategic acquisition and growth initiatives involving smartTrade, the purchase of idealista by Cinven, and serving as the sole lender for the acquisition of Innovative Beauty Group. Additionally, CVC Credit played a significant role in facilitating the delisting of Alpha FMC from the AIM market of the London Stock Exchange, a process managed by Bridgepoint.
CVC Credit oversees a substantial portfolio, managing total assets that exceed €48 billion, which includes €43 billion in fee-paying assets under management (AUM) across both its Liquid Credit and Private Credit divisions. The Private Credit platform comprises its European Direct Lending and Capital Solutions strategies, with assets amounting to more than €18 billion. This robust asset base reflects CVC’s commitment to providing tailored financial solutions and its deep expertise in the credit market.
KEY QUOTES:
“This is an excellent outcome for our latest European Direct Lending fund reflecting strong investment performance and deep and longstanding relationships with the highest quality institutional investors.”
“CVC’s Credit platform benefits greatly from our international network of 30 local offices and its deep investment expertise. We are the number one CLO manager and a top three Private Credit manager in Europe. Our Liquid and Private Credit strategies have grown consistently over recent years and together now account for nearly a quarter of CVC’s total assets under management. We continue to see a significant number of opportunities for further growth in our Credit platform and forms a key part of our broader ambitions in Insurance and Private Wealth.”
Rob Lucas, CEO at CVC
“We are extremely grateful for the continued trust and support of CVC’s global investor base. The European private credit market has developed significantly in recent years, driven by structural tailwinds and the increasing relevance of private credit within the wider credit ecosystem. We have capitalised on this market shift to scale our platform and deepen our resources, establishing CVC Credit as one of the top three private credit players in Europe.”
“Looking ahead, our focus remains on delivering compelling financing solutions for Europe’s leading financial sponsors. By leveraging the insights from CVC’s leading Private Equity platform and the strength of the wider CVC Network, we are ideally positioned to act as a reliable long-term partner and to continue to take advantage of the significant European credit opportunity.”
Andrew Davies, Managing Partner, Head of CVC Credit
