#Spain #Madrid #Asset-Based Lending #Incus Capital #European Credit Fund

Incus Capital's First Fundraising Milestone

In an impressive feat, Incus Capital, nestled in the heart of Madrid, has secured its first close for the European Credit Fund V, amassing €400 million. This achievement signifies the firm is halfway to its ambitious target of €800 million, with a maximum cap set at €1 billion. This milestone reflects significant investor confidence and support from a diverse group of institutions, including some of North America's and Europe's most reputable investors.

Investor Confidence Shines Through

The support for Fund V primarily stemmed from previous backers who have shown a steadfast commitment to the firm, alongside a slew of new investors entering the fray. The fund's success is attributed to an investment strategy centered on asset-based lending (ABL), which many expect to yield lucrative returns while also delivering robust downside protection. This model appears to be an attractive addition to traditional direct lending, fetching a heightened interest from those looking to diversify their portfolios.

Martin Pommier, a partner at Incus, commented on the successful close, expressing gratitude for longstanding investor trust and excitement over welcoming high-quality new institutions into their fold. Pommier emphasized how the strong demand underscores the industry's confidence in Incus' ability to provide consistent returns.

A Large Market with Unique Opportunities

The landscape for asset-based lending in Europe is enormous, with estimates putting the size of the ABL market over €6 trillion globally. In contrast, the direct lending sector is expected to hit €1.5 trillion by 2025. Despite the larger ABL pool, the number of private capital firms focusing on this asset class remains limited, presenting an opportunity for firms like Incus to fill the gap and cater to the market. Andrew Newton, the founder, reinforced the notion that the European capital provision remains under-served, suggesting that Incus' tailored credit strategy is perfectly aligned with market needs.

Wide-Ranging Investment Opportunities

With this new fund, Incus is set to invest in various sectors, including infrastructure, real estate, and other alternative assets, all characterized by adaptable financing solutions aimed at yielding strong risk-adjusted returns. Key investments already completed include:

• - A €55 million financial package for a self-storage platform boasting 10 locations and 50,000 square meters in Portugal.
• - A €45 million senior loan granted to a sponsor-backed high-end hotel and residential project located in Courchevel 1850, France.
• - A €90 million facility allocated to a leading water management entity in Valencia, Spain.
• - A €60 million financing directed toward a frontrunner in campsite operations across the Iberian Peninsula.

This diverse investment portfolio positions Fund V strategically to engage with a pipeline of attractive opportunities. As it moves forward, the fund aims to foster companies and projects that align with both its risk appetite and the market's demands, promoting overall growth.

About Incus Capital

Founded in 2012, Incus Capital has positioned itself as a notable player in the asset management space. With offices across major European cities such as Madrid, Lisbon, Milan, Paris, Frankfurt, and Luxembourg, the firm specializes in providing flexible capital solutions to mid-market companies. Its investment strategy prioritizes downside protection and typically involves transaction sizes ranging from €25 million to €60 million, with an impressive €3 billion in assets under management across various funds. For more information about their capabilities, visit www.incuscapital.com.