BlueBay rakes in over 3 bln euros for senior loan fund

BlueBay has closed its senior loan fund at over 3 billion euros. The fund will focus on providing credit to upper middle market European businesses. Fried Frank provided counsel to BlueBay on the fund.


London – BlueBay Asset Management LLP (“BlueBay”) Private Debt Group announces the final close of its Senior Loan Fund (the “Fund”) with investable capital, including leverage, in excess of €3 billion. The Fund hassignificantly exceeded its initial target, with strong support from both existing and new institutional investors globally. BlueBay’s Private Debt platform now has over €7 billion in AuM and has successfully completed over 55 transactions across 9 geographies since inception in 2011.

The new Senior Loan Fund aims to provide credit to upper mid-market European businesses to fill the funding gap left by banks, through bespoke financing solutions for leveraged buy-outs (LBOs), M&A, corporate financing, growth financing and re-financings. The Fund is BlueBay’s third generation of Private Debt vehicles and complements its Direct Lending funds by focusing on larger, lower-levered, senior debt transactions.

The Fund had substantial support from existing investors in BlueBay’s Private Debt business. The Senior Loan Fund also attracted a strong group of new institutional investors from Europe, North America, Asia and the Middle East, demonstrating BlueBay’s established track record and leading position in the European Direct Lending market. To accommodate its diverse investor base, the Fund offers both levered and unlevered investment options across several currencies.

At final close, the Fund is 12% committed across 6 transactions. BlueBay believes the deal pipeline remains strong, reflecting a growing awareness and acceptance of alternative lenders to banks, as well as demand from mid-market corporates for larger bespoke financing solutions from leading European Private Debt funds.

Anthony Fobel, Head of Private Debt at BlueBay, said:
“We are delighted with the strong response from major institutional investors globally to our Senior Loan Fund. Together, our Senior Loan and Direct Lending funds provide BlueBay with significant firepower to offer financing solutions to both private equity and corporate-backed businesses, to enable them to pursue their acquisition and growth objectives. We continue to see a very strong pipeline of investment opportunities across Europe as economies pick up, M&A markets remain strong and the structural shift towards alternative lenders accelerates.”

About BlueBay Asset Management
BlueBay’s Private Debt business has in excess of €7 billion of AuM in Private Debt vehicles. Since 2011, BlueBay’s Private Debt business has provided capital to a diverse range of European midmarket companies. The Private Debt platform provides bespoke, flexible and holistic financing solutions across the entire capital structure and takes a long-term partnership approach with its portfolio companies. The strategy is underpinned by a highly-experienced team of professionals as well as an efficient and flexible underwriting and investment process. Across more than 55 transactions to date, BlueBay has provided growth financing solutions to a large number of European businesses and has created a diversified portfolio of investments across high-quality corporate borrowers.

BlueBay is a global specialist fixed income manager. Headquartered in London with a strong European presence, the firm invests over US$53 billion (as at 30 June 2017) for institutional investors and financial institutions across the fixed income investment spectrum on a global scale, from active benchmark-aware portfolios to alternative strategies and private debt. BlueBay employs an active management style, exploiting all factors of return and with capital preservation at the core of all processes.

BlueBay has offices in the UK, US, Switzerland, Germany, Luxembourg and Japan. BlueBay Asset Management LLP is wholly-owned by Royal Bank of Canada and part of RBC Global Asset Management. BlueBay Asset Management LLP is authorised and regulated by the Financial Conduct Authority and is a registered investment adviser with the US Securities and Exchange Commission.