Muzinich & Co has secured more than €1.3bn ($1.5bn) in commitments for its third pan-European private debt fund, as the manager sees growing participation from both European and Asian institutional investors, according to a report by Bloomberg.
The New York-headquartered credit specialist said the latest fund is on track for a final close this month and will become its largest European private credit vehicle to date, surpassing the size of its two previous funds. The earlier vintages raised €706m and €800m respectively.
According to the firm, Asian investors account for around 10% of commitments in the current fund, marking the first time the region has participated in its European strategy. The rest of the capital has come primarily from existing European backers.
Muzinich said the broader shift in investor demand reflects increasing diversification away from US-focused private credit strategies, amid growing concerns over exposure to sectors such as software that are facing disruption from artificial intelligence and slowing credit performance in parts of the market.
The fundraise also reflects a wider trend of rising interest in European private debt, which accounted for 46% of global fundraising in the first three quarters of 2025, more than doubling its share from the previous year, according to Preqin data cited by the firm.
Muzinich, which specialises in corporate credit, is also expanding engagement with Middle Eastern investors seeking greater allocation to European strategies. The firm is targeting annual returns of around 8% to 9% for the new fund, excluding leverage.
The portfolio will be diversified across roughly eight to ten European countries, with no single-country concentration, and will focus on sectors including healthcare, business services and food production. The firm said it is also selectively expanding its European investment team across key markets including France and Scandinavia.
