Eurazeo has raised €3.9bn ($4.5bn) for its latest flagship private debt vehicle, signalling continued investor appetite for European direct lending strategies as momentum in US private credit becomes more uneven, according to a report by Bloomberg.
The fund, Eurazeo Private Debt VII, will focus on providing financing to lower mid-market companies across Europe. Including separately managed accounts and capital raised via private wealth channels, the strategy has attracted a total of €5.5bn, according to the firm. Roughly 65% of committed capital has already been deployed across more than 70 portfolio companies.
The fundraising comes amid a broader shift in global allocation trends, with institutional investors increasingly looking beyond the US private credit market. Concerns around retail-driven redemptions and exposure to software-heavy lending portfolios have weighed on sentiment in parts of the US market, encouraging a reallocation toward Europe.
Data cited from Preqin shows European-focused private credit funds accounted for 46% of global fundraising in the first three quarters of 2025, up sharply from 23% in 2024.
Rival manager Bridgepoint Group is also reportedly preparing to raise around €5 billion for its next European direct lending fund.
Eurazeo executives argue that Europe’s traditionally more fragmented legal and economic landscape, once seen as a disadvantage, is now attracting investors seeking tighter underwriting discipline and less crowded deal environments.
The firm continues to focus on lower mid-market lending, avoiding larger-cap buyout financings where competition has intensified and pricing power has become more constrained.
