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Rothschild Merchant Banking completes EUR415m fundraising of Five Arrows Credit Solutions

Rothschild Merchant Banking, the investment arm of Paris Orléans, has completed the final closing of Five Arrows Credit Solutions (FACS), its junior debt fund focused on the Western European middle-market. 

The fund has secured total commitments of EUR415 million, in excess of its target, from a global investor base comprising large institutions, family offices and high net worth individuals.
 
FACS provides unitranche, mezzanine and other junior debt instruments to mid-market European companies.  The fund is seeking to fill the financing gap currently faced by small and 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 recapitalisation transactions, the fund also provides customised, 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.
 
The fund is managed by Martin Hook and Edouard Veber, both of whom have extensive experience in managing junior debt and mezzanine funds. The team has subsequently been expanded through the appointment of investment executives in London, Paris and Luxembourg.
 
FACS is part of Rothschild Merchant Banking’s platform, which manages more than EUR3 billion across the entire capital structure from private equity to private debt.
 
Marc-Olivier Laurent, head of Rothschild Merchant Banking, says: “We are delighted with the success of the FACS fundraising, which is the fourth consecutive fund we have launched which has exceeded its fundraising target. We believe that the combination of a highly-experienced team led by Martin and Edouard, together with a focused investment strategy targeting under-served European middle-market companies and the powerful synergies from the Rothschild Merchant Banking’s platform made FACS an appealing proposition to a diverse group of sophisticated international investors.”

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