– Five Arrows, the alternative assets arm of Rothschild & Co, completed fundraising for its fourth Direct Lending strategy, Five Arrows Debt Partners IV (FADP IV).
– The Fund and associated vehicles secured €2.4 billion in commitments, exceeding its €2.0 billion target and 70% larger than its €1.4 billion predecessor.
– The successful fundraising highlights investor confidence in the strategy and the resilience of the asset class amid macroeconomic and geopolitical challenges.
– FADP IV provides bespoke and flexible financing solutions to European and North American mid-market companies.
– Investments span the capital structure, including senior-secured unitranche loans, second lien, mezzanine, PIK facilities, and preferred equity.
– The Fund supports both private equity sponsors and family/entrepreneur-owned businesses with tailor-made direct lending solutions.
– Early deployment is strong, with over 50% of capital already committed across 19 transactions.
– Transactions focus on resilient, growing sectors: data, software, IT services, healthcare, education, and business services.
– The direct lending strategy has been active since 2012.
– FADP IV succeeds prior funds: Five Arrows Debt Partners III, Five Arrows Direct Lending, and Five Arrows Credit Solutions.
– Managed by a team of 26 professionals of 10 nationalities, based in London, Paris, New York, and Luxembourg.
– Strong support from a globally diversified investor base, including insurance companies, pension funds, blue-chip institutions, family offices, and high-net-worth individuals.
– Repeat investors accounted for 70% of commitments.
– Rothschild & Co and the Fund’s executives made substantial commitments.
– Co-Managing Partners Edouard Veber and Martin Hook highlighted investor trust, repeat participation, experienced team, proven track record, selective strategy, and Rothschild & Co’s global network.
– Fundraising brings total Five Arrows assets under management to over €29 billion.
