AnaCap Financial Partners has held the first close of its Credit Opportunities Fund II with commitments of £265m, surpassing its £250m target after five months on the road.
The fund, which has a hard cap of £350m, targets performing, semi-performing or non-performing consumer and SME debt, including loans, leases, securities or other obligations requiring active asset management.
The vehicle will seek to capitalise on the rapidly evolving market opportunity in this space, driven by the need for financial institutions to de-lever after years of expansion, the firm said in a statement.
The financial services market now accounts for 29 per cent of European GDP, with bank assets totalling over 200 per cent of GDP, compared with just 75 per cent in the US.
The cycle is being magnified by historical changes to the regulatory framework as well as the dramatic contraction of wholesale and securitisation funding which, combined with weak economic performance and rising unemployment, is forcing a fundamental restructuring of the financial system, expected to take place over many years.
Investors in the fund include the State of New Jersey, Hamilton Lane and OPERS. The vehicle has a three-year investment period and an eight-year life.
Justin Sulger, a partner and head of credit opportunities at AnaCap, said, “We are pleased and humbled to have received such strong investor support, exceeding the target for our second Credit Opportunities Fund within five months.
“Financial institutions face a massive refinancing wall and increased capital requirements in the coming years, which combined with a deteriorating capital-raising environment makes significant deleveraging inevitable,” he added.
Last summer the firm bought Banco Popolare Ceská Republika, the Czech division of Italian banking group Banco Poplare, 18 months after announcing the deal BPCR since the Italy’s Banco Popolare’s bail out in 2009.
The firm’s third EU bank acquisition, BPCR will rebrand as Equa bank and launch a new range of financial products. The aim for AnaCap’s banks strategy is to build new players in markets where consumers and businesses suffer from a lack of competition.
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