LONDON, March 7, 2017 /PRNewswire/ -- Alcentra Limited ("Alcentra"), the alternative fixed income specialist for BNY Mellon Investment Management (IM), announced the final close of its second European direct lending fundraising. This fundraising has brought recent commitments to €4.3bn across funds and separately managed accounts. The firm's committed capital for the strategy now exceeds €5.7bn.
The fundraising is part of the broader Direct Lending strategy that Alcentra has been offering to institutional investors since 2003. To date, Alcentra has invested over €5.3 billion in middle market companies across senior debt, unitranche, second-lien, mezzanine and equity investments.
Alcentra has been sourcing and arranging financings to middle market businesses in Europe since 2003. Alcentra was one of the first investment managers selected to participate in the HM Treasury Business Finance Partnership initiative in 2012. The closure of the second EDL fundraising follows that of Alcentra's first EDL Fund in November 2014, whose committed capital for the strategy exceeded €1.5bn.
Graeme Delaney-Smith, Managing Director and Head of European Direct Lending for Alcentra, said:
"It is an exciting time for direct lending. In recent years we have seen a growing interest from European companies and financial sponsors to partner with non-bank asset managers to access financing solutions. We believe that Europe represents one of the best opportunities in this space. Banks have had to increasingly focus on improving their capital ratios and as a result have been unable to lend to businesses to the extent they used to. This has created the opportunity for investment managers with credit and structuring expertise like Alcentra to provide financing to quality businesses. Our direct lending platform has gone from strength to strength and our Fund, with such significant capital committed by investors, is the latest proof."
Jack Yang, Global Head of Business Development at Alcentra, said:
"Globally, institutional investors are looking for meaningful, long-term returns. Private lending is becoming a key strategy for them, given the potential for equity-like returns and the income and capital preservation of debt. I am very pleased with the strong interest that this Fund has generated amongst investors. The level of participation from pension funds, insurers, and not for profit organisations, is indicative of the growing popularity of this asset class and is strong recognition of Alcentra's leadership."
Alcentra Group is a global asset management firm with assets under management of approximately $31bn1. It is considered to be one of the largest managers of private debt in Europe, and has received awards, including the "Best European Direct Lending Fund" by Creditflux Manager Awards 2015, the "Direct Lender of the Year Europe 2014" and the "Deal of the Year Europe 2014" by Private Debt Investor."
Notes to editors:
Alcentra Group is a global asset management firm with assets under management of approximately $31bn1. Alcentra Group has an investment track record that dates back to 1998. Strategies include: senior loans, high yield bonds, direct lending, structured credit, distressed debt, and multi-strategy credit. Alcentra Group is owned by The Bank of New York Mellon Corporation and is headquartered in London, with offices in New York and Boston.
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.6 trillion in assets under management2. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of December 31, 2016, BNY Mellon had $29.9 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
All information sourced by BNY Mellon as of 07 March 2017. This press release is qualified for issuance in the UK and Europe is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Investment Management EMEA Limited to members of the financial press and media and the information contained herein should not be construed as investment advice. The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed. Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds. Registered office of BNY Mellon Investment Management EMEA Limited: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Conduct Authority. A BNY Mellon Company.
Alcentra Limited is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 in respect of the financial services; and is authorised and regulated by the Financial Conduct Authority (FCA) under UK laws, which differ from Australian laws. This material is for wholesale clients only and is not intended for distribution to, nor should it be relied upon by, retail clients. If this document is used or distributed in Australia, it is issued by BNY Mellon Investment Management Australia Ltd (ABN 56 102 482 815, AFS License No. 227865) located at Level 2, 1 Bligh Street, Sydney, NSW 2000.
1 Alcentra Ltd and Alcentra NY, LLC (collectively "Alcentra Group") are subsidiaries of BNY Alcentra Group Holdings Inc. The Bank of New York Mellon Corporation ("BNY Mellon") holds 100% of the Alcentra Group. Assets under management reflect assets of all accounts and portions of accounts managed by Alcentra Group for Alcentra and assets managed by Alcentra Group personnel for affiliates under dual officer arrangements.
2 As of 31 December 2016
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SOURCE BNY Mellon Investment Management