Rothschild‘s merchant banking arm has completed the first closing of Five Arrows Credit Solutions, its private debt fund focused on the Western European middle-market. The fund has with total commitments so far of 235 million euros ($302.1 million). The final closing target is 400 million euros.
Rothschild is pleased to announce that its Merchant Banking arm has completed the first closing of Five Arrows Credit Solutions (“FACS”), its private debt fund focused on the Western European middle-market, with total commitments of €235 million.
The placing, which started at the turn of the year, has gathered strong traction from a global investor base comprising institutions, family offices and high net worth individuals. The final closing target is €400 million.
FACS provides unitranche, mezzanine and other junior debt instruments to mid-market European companies. The fund is seeking to capitalize on the dislocated European credit markets and to fill the financing gap currently faced by medium-sized corporates as banks and other providers reduce lending capacity for these borrowers.
In addition to supporting private equity sponsors in buyout, expansion and recapitalization transactions, the fund also provides customized, tailor-made, direct lending solutions to privately-owned corporates with financing needs relating to acquisitions, expansion capital, refinancing and shareholder reorganisation. The fund will also look opportunistically at acquiring existing loans in the secondary market, in order to take advantage of attractive discounts achievable from distressed sellers.
FACS is already actively working on new opportunities and will be able to draw on the global network of contacts and in-depth industry expertise of the Rothschild Group to add value to its investment selection process and to its portfolio companies.
The fund is managed by Edouard Veber, formerly the co-manager of JP Morgan’s European mezzanine investment activities, and Martin Hook, formerly a Partner at Indigo Capital, one of the longest established independent European mezzanine funds.
FACS represents the latest offering within Rothschild’s broader Merchant Banking platform, which has more than €3 billion under management across the entire capital structure from private equity to private debt. This cohesive range of investment propositions makes Rothschild’s Merchant Banking business a preferred partner for companies in need of financing and for private and institutional investors seeking to deploy capital across multiple strategies.
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For further information:
James McFarlane – +44 (0)20 7903 0660
Rothschild is one of the world’s largest financial advisory groups.
There are four main arms to our business: Global Financial Advisory, Wealth Management & Trust, Institutional Asset Management and Merchant Banking.
Our Merchant Banking business deploys the firm’s capital, alongside that of trusted partners, primarily in European investment opportunities. Since 2008 we have developed a range of vehicles that allow us to respond to the capital needs of companies, through instruments ranging from senior debt to equity.
Our experienced team has the flexibility to invest with a wide range of partners including entrepreneurs, financial investors, families and institutions, and strives to support our portfolio companies through access to Rothschild’s global network of industry and sector expertise.
Today Rothschild’s Merchant Banking business manages more than €3 billion of funds globally.