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Pemberton launches new direct lending fund

By Daniel Lanyon on 7th July 2017

The Alternative Credit asset manager, backed by one of Europe’s largest insurers, Legal & General Group PLC, is seeing strong demand from European mid-market corporates for non-bank lending.



Pemberton has launched a new direct lending portfolio just eight months since it closed its €1.2bn fund.


The new strategy also offers institutional investors exposure to European mid-market companies' private debt used to finance their growth.


The firm, a spokesman says, has seen strong demand from mid-market companies looking for flexible financing to support their growth plans, including expansion and acquisitions.


Pemberton will provide senior and unitranche funding for companies that are looking to return to growth, including after suffering temporary operating issues. Unlike the firm’s other fund that invests only in the senior tranches, this new portfolio will also hold junior debt.


The lending will focus on firms that banks have traditionally serviced but have pulled bank from owing to regulatory changes. Basel III has made the provision of subordinated debt prohibitively expensive for banks as it typically counts as a capital deduction.


Pemberton intends to use its existing pan-European platform to originate investments in established, performing European mid-market companies, with a turnover between €75m and €1bn.


Symon Drake-Brockman, Managing Partner of Pemberton, says the new strategy marks new ground for Pemberton.


“We are expanding on the lending capacity we have generated through our senior debt strategies to provide greater opportunities throughout the capital structure. With this new strategy, we will continue our commitment to delivering the risk-adjusted returns investors expect and the capital European companies need,” he said.


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