The fund, which provides specialty debt financing to European SMEs, is currently anchored by a European pension plan, a European government institution, a number of family offices and high net worth individuals, alongside HMC’s cornerstone investment of €25m.
The fund is targeting €200m in commitments and is scheduled to hold its final close in December 2014, HMC said.
HEGCF will focus predominantly in the information technology, life sciences and e‐commerce sectors. Typical loan facilities range from €2m €10m with the flexibility to do larger transactions opportunistically, according to HEGCF co‐head and senior managing director David Bateman, pictured.
He said, “The absence of bank financing for SMEs and the cost of private equity in this space across Europe represents an opportunity to support high growth businesses in need of capital to drive organic growth, make acquisitions, invest in fixed assets and engage in various forms of recapitalisation.”
HEGCF made its first loan in July 2013 and is presently closing its tenth deal, creating a portfolio of loans across mostly Western and Northern Europe.
Co‐head and senior managing director Johan Kampe said, “We are very pleased with the investments we have made to date, and strength of our deal pipeline suggests particularly favourable conditions for our strategy, serving the many and geographically dispersed innovative growth companies across Europe”.
All loans are performing “as anticipated”, he added, noting the fund has already made its first cash distributions to investors.
HMC has approximately $3.5bn in assets under management, investing across strategies European and US real estate, venture capital, mezzanine debt, independent power, US and Australian private equity, and public securities.
AltAssets reported earlier in the year that the firm was on track hit the target for its latest power fund in the summer.
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