Ardian Private Debt raises €3bn for Generation IV fund
Paris/Frankfurt — With a volume of €3 billion, Ardian is launching its largest private debt platform to date — meaning that the fourth generation of the private debt platform has significantly exceeded its original target of €2.5 billion. The Private Debt unit was established in 2005 and provides financing solutions for mid-market companies throughout Europe. Ardian’s Private Debt team has completed more than 120 transactions since the division’s inception and manages $7 billion in assets.
The latest fund has significantly exceeded the original fundraising target of €2.5 billion, building on the success of the third generation fund, which raised €2 billion in 2015. The focus of the current platform remains on providing flexible and individually tailored financing solutions for European companies. The offering was also expanded to include so-called “stretched senior debt” in order to gain further market share in the M&A business and in competition with banks. Stretched senior debt is a hybrid financing structure that is primarily used in corporate acquisitions and disposals and combines various loan tranches — similar to unitranche financing.
More than 90 investors from 15 countries have provided funding for the new platform, including from Europe, Asia and North America. They include insurance companies, pension funds, banks, foundations and government organizations. In particular, the increased share of investors from Asia and North America reflects Ardian’s global positioning and diversified investor base.
Vincent Gombault, Member of the Executive Committee and Global Head of Fund of Funds and Private Debt, said: “With our fifteen-year track record across four fund generations, Ardian has clearly positioned itself as one of the leading providers of private debt to European mid-market companies. The successful fundraising is testament to our experienced investment team, Ardian’s extensive asset management expertise and its global network. As a long-standing active player in the private debt market across different credit cycles, Ardian is very well positioned to seize the opportunities arising with the increasing relevance of private debt in the global financial market.”
Mark Brenke (photo), Head of Ardian Private Debt and Managing Directoradded: “The recent fundraising highlights the current momentum of Ardian Private Debt and the increasing attractiveness of this asset class. Demand for financing from dynamically growing mid-market companies in Europe continues to grow. Based on our strong track-record, we will take advantage of opportunities presented to us through the expanded platform in its offering and gradually penetrate areas previously served exclusively by banks.”
Thanks to a continuously growing team and diversified global deal flows, Ardian Private Debt has provided more than one billion euros in financing annually over the past years. At the same time, the number of investment opportunities under intensive review by Ardian has increased significantly. Therefore, the team acts very selectively and focuses its selection process to realize only the best opportunities.
Ardian is one of the world’s leading independent investment firms, managing approximately US$96 billion in assets on behalf of its investors from Europe, South and North America and Asia. The company is majority-owned by its employees and generates sustainable, attractive returns for its investors.
With the objective of achieving positive results for all stakeholders, Ardian’s activities promote individuals, companies and economies worldwide. Ardian’s investment philosophy is aligned with the three guiding principles of excellence, loyalty and entrepreneurship.
The company has a global network of more than 640 employees and 15 offices in Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), South America (Santiago de Chile), North America (New York and San Francisco) and Asia (Beijing, Seoul, Singapore and Tokyo). Ardian manages the assets of its approximately 1,000 investors in five investment areas: Direct Funds, Funds of Funds, Infrastructure, Private Debt and Real Estate.