Sixth Street announced it has reached a final close on Sixth Street Specialty Lending Europe III (SLE III) at its hard cap with €3.75 billion in equity commitments, marking the firm’s largest dedicated fund focused on European direct lending. The firm expects total investable capital for SLE III to be about €7 billion, including anticipated leverage.
The fund is designed to provide flexible financing solutions to European companies across stages of growth, with Sixth Street citing its ability to deliver customized capital “with speed and certainty.” The firm said its dedicated European direct lending team and fund complex were established in 2015, following broader investing activity in the region over the past two decades.
Since 2015, Sixth Street’s European direct lending platform has completed more than 75 transactions across the UK and Europe, providing capital solutions ranging from €30 million to more than €2 billion. The firm said the platform supports both founder-owned and sponsor-backed businesses across sectors, including software, healthcare, consumer, industrials, and business services.
Sixth Street said the European direct lending business operates as part of its Global Direct Lending platform and is supported by the firm’s broader investment capabilities, with the London-based team working alongside Europe-focused professionals across growth equity, real estate, asset-based finance, and financial services. The firm also pointed to affiliated flexible investment strategies, including its Sixth Street TAO platform.
Sixth Street said it manages more than $125 billion in assets under management and committed capital, and has more than 700 employees globally, including over 300 investment professionals (as of October 31, 2025).
KEY QUOTE:
“We are grateful to our long-term capital partners for their trust and commitment to our strategy as we continue to support European businesses at any point in their lifecycle, offering customized capital solutions delivered with speed and certainty.” “Our European business is significantly bolstered by the breadth and depth of Sixth Street’s global platform and the deep expertise of our dedicated sector teams.”
Michael Griffin, Co-Head of Sixth Street Global Direct Lending and Head of Europe Direct Lending
