Incus Capital Secures €800 Million Commitment for Fund V Growth

Incus Capital Announces Milestone in European Credit Fund V

Incus Capital, a private credit expert based in Madrid, recently marked an impressive first close of its European Credit Fund V. This has led to securing 50% of the fund's targeted size of €800 million in closed and committed capital. The firm’s hard cap for this ambitious fund is set at €1 billion, showcasing its significant role within the financial sector.

Strong Support from a Diverse Investor Base

The response from investors has been overwhelmingly positive. Fund V has garnered robust support from a diversified pool of investors, including a notable number of repeat commitments from established institutions throughout North America and Europe. Moreover, new commitments have also rolled in from leading insurance companies, pension funds, global consultants, and family offices. This influx of capital reinforces the growing interest in Incus’s unique investment strategy, focused on real assets.

Commitment from Leadership at Incus Capital

Martin Pommier, one of the partners at Incus, expressed appreciation for the unwavering trust of their long-term investors. He emphasized their excitement in welcoming distinguished new institutions into this flagship fund series. With this significant first close for Fund V, Pommier noted that strong investor demand reflects the high level of confidence in their consistent track record of returns.

Investor Confidence in Asset-Based Lending

Investors are particularly drawn to Fund V’s asset-based lending (ABL) approach, which is perceived as a way to achieve desirable returns while ensuring strong downside protection. This strategy complements traditional direct lending portfolios. Notably, while the direct lending market is projected to reach about €1.5 trillion in the near future, the ABL market currently stands at an impressive €6 trillion globally. However, the number of private capital firms currently engaged in ABL is relatively small, creating a distinctive competitive edge for Incus.

Opportunities for Growth in the European Market

Andrew Newton, the Founder and Managing Partner of Incus, elaborated on the significant opportunities ABL presents in the European landscape, which continues to be underserved by capital providers. Newton underscored that the appetite for Incus’s tailored credit strategy is stronger than ever, indicating a broad acceptance of alternative financing options among European mid-market businesses.

Diverse Sectors Supported by Fund V

Fund V is structured to exploit a strong pipeline of lucrative prospects across various sectors, including infrastructure, real estate, and alternative assets. The goal is to facilitate companies and projects with flexible financing solutions while maintaining a focus on strong risk-adjusted returns. This careful consideration ensures that Incus Capital remains at the forefront of addressing pressing capital needs in these critical areas.

Recent Investments Made by Fund V

Incus Capital has recently finalized numerous investments in the European mid-market, which demonstrate their approach to financing real asset opportunities. Some of these include:

• €55 million financing to a leading self-storage platform with 10 locations and 50,000 square meters in Portugal.
• €45 million senior loan for a sponsor-backed five-star hotel and high-end residences located in Courchevel 1850.
• €90 million facility dedicated to a leader in water management within the Valencia region.
• €60 million financing supporting a significant player in campsite operations throughout Iberia.

About Incus Capital

Founded in 2012, Incus Capital has established itself as a prominent player in real assets investment, with offices in major cities across Europe. Recognizing the importance of providing tailored capital solutions, Incus focuses on assisting mid-market companies across various sectors, particularly infrastructure and real estate. Their strategy emphasizes downside protection, with targeted investment sizes ranging from €25 million to €60 million. Currently, Incus Capital manages assets totaling €3 billion, making significant contributions to the European financial landscape.

Frequently Asked Questions

What is the target size for Incus Capital's Fund V?

The target size for Incus Capital's Fund V is €800 million, with a hard cap of €1 billion.

What investment strategy does Fund V employ?

Fund V employs an asset-based lending (ABL) approach, which provides attractive returns with solid downside protection.

How does Fund V source its capital?

Fund V sources its capital from a diverse group of investors, including repeat commitments from well-established institutions, insurance companies, pension funds, and family offices.

What sectors does Fund V primarily focus on?

Fund V primarily focuses on sectors like infrastructure, real estate, and alternative assets, aiming for strong risk-adjusted returns.

When was Incus Capital founded?

Incus Capital was founded in 2012 and is recognized for its flexible capital solutions in the real asset investment sector.

About The Author

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