BlueBay closes second lending fund on 2 bln euros

BlueBay Asset Management closed its second direct lending fund on its revised 2 billion euros target in less than a year. BlueBay got more than 80 percent re-investment from existing investors. Direct Lending Fund II was 25 percent deployed at closing. Fried Frank’s London-based team advised BlueBay on the fundraising.

Press Release

Fried Frank’s new London-based asset management team has advised BlueBay Asset Management LLP (“BlueBay”), a specialist fixed income asset manager with approximately €56 billion of AuM, on the raising of its Direct Lending Fund II SLP (“the Fund”), which has exceeded its revised target of €2 billion, completing the fund-raising in less than a year.

This Fund builds on very strong support from existing investors with over 80% of its predecessor fund investors’ committing to the Fund. The Fund also attracted new investors globally.

This Fund is BlueBay’s second generation Private Debt fund, and BlueBay’s Private Debt business, headed by Anthony Fobel, now manages in excess of €4 billion of AuM in Private Debt vehicles.

The Fund will provide flexible financing solutions to medium-sized European businesses to fill the funding gap left by banks, by investing in senior secured and selected subordinated loans, with the ability to underwrite large tickets in excess of €200 million.

At final close, the Fund is already 25% committed. The deal pipeline remains strong, reflecting growing demand from mid-market companies for larger bespoke financing solutions from private debt funds.

The Fried Frank team in London working on this matter included asset management partners Kate Downey and Mark Mifsud, and asset management associates David Christmas and Kayleigh Patrick.

“We are delighted to continue our long-standing and successful advisory relationship with BlueBay’s private debt team on this latest, significant European fund-raising in this extremely competitive market,” said Kate Downey and Mark Mifsud. “Fried Frank’s considerable experience globally in acting for fund managers within this asset class, combined with the arrival of the new London team, have allowed us to provide a best-in-class service to BlueBay on its latest high-profile fund.”

The closing follows Fried Frank’s recent extension of its Asset Management Practice to London. The expansion is part of the Firm’s strategy to further develop its market-leading funds practice, which acts for clients across a range of asset classes; the London practice has a particular focus on credit, private equity, infrastructure, energy/clean tech and venture/growth.

Prior to joining Fried Frank, the London Asset Management team also advised BlueBay on its first Direct Lending Fund which final closed at over €900 million of commitments (including co-investment vehicles) in May 2013.

About Fried Frank
Fried, Frank, Harris, Shriver & Jacobson LLP is a leading international law firm with approximately 450 lawyers who advise the world’s leading corporations and financial institutions on their most critical legal needs and business opportunities. The Firm has offices in New York; Washington, DC; London; Paris; Frankfurt; Hong Kong; and Shanghai. More information can be found at www.friedfrank.com.