Harbert Raises €122 million For European Private Debt Fund

Jun 1 2015 | 2:38pm ET

Alternative investment manager Harbert Management has announced the final closing of its first European private debt fund, the Harbert European Growth Capital Fund I, with €122 million in assets.

The fund received strong support from existing investors and new commitments from other leading institutional investors, including European government development agencies, private pensions, family offices and funds-of-funds, according to a statement released by the company. 

"With more than 20 investments already completed and a packed pipeline, the new fund is off to a great start," said Johan Kampe, Senior Managing Director and co-head of the fund in the statement. 

Kampe will run the new vehicle with fellow co-head David Bateman, who noted that "the broad geographic spread of our loans and the range of our investments suggests our timing has been spot-on. This continues to be an opportune time for our debt capital."

Kampe and Bateman partnered with Harbert Management Corporation to form the new fund in January 2013 and has been fundraising since September of that year. The fund will focus on structured lending to high-growth small and medium-sized companies located in northern and western Europe, taking advantage of the high cost of debt capital in Europe, limited competition, and the availability of higher-quality investments, the statement noted. 

Downside protection is sought through secured loans, with upside potential via a meaningful equity component, according to the statement. At its final close, the new fund had committed approximately €86m in 23 loan facilities.

Founded in 1993, Birmingham, AL-based Harbert Management Corporation has approximately $4.4 billion in assets under management as of May 1, 2015, for primarily foundations, endowments, funds-of-funds, pension funds, financial institutions, family offices and high net worth individuals across multiple asset classes.

Besides the new European private debt fund, Harbert investment strategies include European and U.S. real estate, venture capital, mezzanine debt, independent power, U.S. private equity and public securities.

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