(Bloomberg) -- Arcmont Asset Management is planning to raise over €12 billion ($13 billion) for a new European direct-lending fund, people with knowledge of the matter said.
It’s the fifth fund from London-based Arcmont’s flagship strategy — which looks to back European buyouts with private loans — after the firm raised €10 billion for the previous vintage at the start of this year.
Increasingly, private lenders such as Arcmont and Ares Management Corp. are the go-to choice for private equity firms seeking debt to fund their acquisitions. The industry’s growing demand is fueling the creation of ever-larger funds at leading firms, with Ares looking to raise about €15 billion from investors for a similar strategy.
For its new fund, Arcmont is offering investors a net internal rate of return of between 8% and 14%, said the people, who requested anonymity when discussing private matters. The return level depends on preferences regarding fund leverage and subordinated debt, they added.
A spokesperson for Arcmont declined to comment.
Arcmont was bought by US asset manager Nuveen last year. Led by chief executive Anthony Fobel, the firm has raised over €29 billion since its founding in 2011.
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