Golding Capital Partners has received capital commitments of €75 mln at the first closing of its inaugural dedicated co-investment fund in the private credit asset class.
Existing investors participated in the initial fundraising phase to subscribe for Golding private debt co-investment 2021, which has a target volume of €200 mln.
The fund’s investment focus is on first lien senior lending to small and medium-sized enterprises in Europe. In order to draw down and deploy capital swiftly, two initial investments have already been made and two additional transactions are set to close soon.
Preferred borrowers are mid-market European businesses with robust business models in stable sectors such as software/IT, business services and healthcare.
Said Dr Matthias Reicherter, managing partner and chief investment officer at Golding: 'We are particularly pleased by the sustained interest in private debt co-investment funds from many of our existing investors.
'Private credit can be a great source of stability in a portfolio, especially in volatile market phases, and a hedge against inflation at the same time – while offering a more attractive return profile than the bond markets.'
One of the recipients of the two loans made to date is a software company offering B2B solutions in the e-commerce sector. The other borrower is a market leader in the roof refurbishment business. Two more similarly conservative lending transactions are due to close shortly.
Jakob Schramm, partner and head of private credit at Golding added: 'The private credit segment and direct lending in particular are still growing quickly, because many banks are continuing to withdraw from the new lending business.
'The pandemic has exacerbated this secular trend. And in this advantageous situation our investors can benefit from rising interest rates, which we distribute regularly.
'Given the senior ranking of our funding instruments and the substantial liquidity and equity cushions we require from our selected borrowers, this is therefore a very robust asset class.'
The Golding private debt co-investment fund 2021 is structured as a Luxembourg SCS SICAV-FIAR and has a lifetime of eight years. Golding is aiming for a return of at least 7.0-8.0% net IRR and plans to hold a final closing in the second half of 2023.