(l-r) Michael Curtis, head of private credit strategies, and Marc Preiser, portfolio manager, at Fidelity International, announced the launch of their first European private credit fund this week. Photos: Fidelity International; Montage: Maison Moderne

(l-r) Michael Curtis, head of private credit strategies, and Marc Preiser, portfolio manager, at Fidelity International, announced the launch of their first European private credit fund this week. Photos: Fidelity International; Montage: Maison Moderne

Fidelity International has introduced its first European direct lending fund, following a senior financing deal with a Dutch dental clinic group, as the asset class sees rising appeal among institutional investors amidst global uncertainties.

Fidelity International has unveiled its first European direct lending fund. The launch, announced on 16 October 2023, came after finalising a senior financing deal with the Netherlands-based Clinias Dental Group.

This marks, according to Fidelity, a strategic foray into an asset class that saw European assets under management soar to €232bn ($248bn) by December 2022. The terms and volume of the Clinias deal were not revealed.

The fund, launched in Luxembourg as a closed-end investment vehicle, focuses primarily on senior secured loans pivotal to the mid-market segment. These loans are geared towards European enterprises with Ebitda values between €5m and €30m. Central to the fund’s focus are regions in Northern and Western Europe, Fidelity said.

Spearheaded by Michael Curtis, head of private credit strategies, the fund’s team comprises mid-market specialists, each with over two decades of industry experience. Marc Preiser has been designated as the portfolio manager of the fund.

Highlighting the significance of this venture, Fidelity, with oversight of over $744bn in total client assets globally, stated in a that this transaction marks the debut of their European direct lending fund, specifically curated for institutional investors.

Preiser he and his team had long-standing commitment to investments in the healthcare and middle-market sectors.

Curtis projected an uptick in the number of investors gravitating towards private assets in their portfolios and foresees this trend gaining more traction. He stated, “the surge in demand for private credit is a testament to institutional investors chasing the relative safety of secured debt offerings. These offer a stable income from floating rates and are strategically positioned at the pinnacle of the capital structure.” Curtis revealed that a 20-strong team of seasoned investment professionals would join the direct lending division.

Structurally, the Fidelity European direct lending fund comprised an array of Luxembourg special limited partnerships: the Fidelity European Direct Lending EUR SCSp, USD SCSp and GBP SCSp. Combined, they establish an unregulated collective investment scheme recognised as an alternative investment fund (AIF).

Fidelity European Direct Lending Fund General Partner is the assigned general partner, while FIL Investment Management (Luxembourg), a public limited company, has been appointed as the external alternative investment fund manager (AIFM) for every entity within the fund. The AIFM has the necessary approvals and is supervised by the Luxembourg Financial Sector Supervisory Commission (CSSF), affirmed Fidelity.

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