AlbaCore Capital is looking to raise over €2bn ($2.2bn) for a new senior direct-lending strategy which will compete with established lenders including Ares Management Corp and Intermediate Capital Group, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the new fund will provide senior secured loans to finance European leveraged buyouts.
Senior lending is one of the fastest-growing segments within the expansive $1.7tn private credit industry, with buyout firms including CVC and KKR & Co increasingly turning to the direct-lending market to fund their acquisitions.
Based in London, AlbaCore manages approximately $9.4bn in assets and has traditionally focused on higher-yielding debt, including capital solutions and opportunistic credit. The firm was founded in 2016 by former Canada Pension Plan Investment Board executive David Allen. Last year, First Sentier Investors acquired a majority stake in the firm.
