Park Square Capital, a European private credit specialist, has successfully raised €3.4bn ($3.8bn) for its latest direct-lending fund, European Loan Partners II, which will lend to private equity-owned mid-market businesses across Europe, according to a report by Bloomberg.
The report quotes the firm’s managing partner Robin Doumar as confirming that the new fund includes a joint venture with Sumitomo Mitsui Banking Corp.
The private credit industry has expanded rapidly, reaching $1.7tn last year, up from around $500bn in 2015. This growth has intensified competition among direct lenders, especially as central banks begin to cut interest rates.
According to Doumar the focus among investors has shifted over the past five years, moving from understanding the fundamentals of lending to scrutinising fund managers’ track records and net performance, and Despite the growing competition, he remains optimistic about future opportunities. He pointed out that while pricing has tightened, this has led to an uptick in transaction activity.
Park Square has previously provided financing to companies such as Ambassador Theatre Group Ltd and Trescal, and Doumar expects deal flow to continue increasing.
