UK alternatives investor Cheyne Capital has struck its €1bn maximum for its second fund targeting corporate credit, special situations and debt restructurings.
The firm launched its Cheyne Strategic Value Credit in 2017, and closed its debut European Strategic Value Credit Fund on its €1bn hard cap two years later.
Cheyne said it took just six months after its first close to raise Fund II, which will continue the strategy of providing capital solutions to mid-market corporates facing liquidity and other complex financial challenges.
The new fund has already initiated seven investments in five different European countries, across industries including business process outsourcing, ground and cargo handling services, security solutions and food products.
Cheyne said key sources of opportunity for the fund include the ongoing sell-down of underperforming and other non-core corporate loans by European banks, and the provision of rescue and liquidity bridge financings to stressed but fundamentally viable businesses.
It added that the fund had been deliberately capacity-constrained to maximise its participation in the broadest range of opportunities and capital structures, with a focus on smaller transaction sizes which fall below the minimum size requirements of the larger distressed debt and opportunistic credit funds.
Anthony Robertson, managing partner and CIO of Cheyne Strategic Value Credit, said, “We are honoured that so many of our existing investors have chosen to continue the journey with us, and we warmly welcome our new investors.
“There is a huge need for alternative sources of capital to support European mid-market businesses facing financial challenges, particularly those which have been negatively impacted by the pandemic.
“Our team has a recognised track record in providing flexible capital solutions to facilitate a normalisation and recovery in operating performance.”
Last year Cheyne launched its second impact real estate fund targeting affordable housing in the UK.
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