IAIM announces final close of Private Debt Fund II at over €600m

Investec Alternative Investment Management (IAIM) is pleased to announce the successful final close of its second private debt fund, Investec Private Debt Fund II (PDF II), with total commitments of over €600 million. The fund was oversubscribed and is more than twice the size of Investec Private Debt Fund I, which closed at €250 million in 2022.

The final close of PDF II builds on the momentum of Investec’s expanding private credit capabilities, following the launch of Investec Private Debt Fund I and the subsequent establishment of Investec’s Senior Debt Fund I (SDF I) in November 2025. Launched in partnership with Carlyle AlpInvest, SDF I is a European senior debt fund with approximately €400 million of investable capital, focused on traditional senior secured lending in the lower mid-market.

PDF II is a closed-ended, Luxembourg-based special limited partnership fund providing senior secured debt (including unitranche) and subordinated debt to private equity and corporate-backed businesses with EBITDA between €3 million and €50 million. The fund’s primary geographic focus is the UK, Ireland, Benelux and DACH regions. PDF II is classified as Article 8 under the EU Sustainable Finance Disclosure Scheme (SFDR).

The fund targets growth-oriented businesses underpinned by defensive business models, a segment that remains underserved by banks and fund providers. PDF II is managed by IAIM and investments are originated by Investec’s Direct Lending team, comprising over 60 investment professionals with extensive experience in UK and European lending to small and mid-sized corporates. PDF II has attracted a strong and diverse group of investors from across Europe, with significant support from both long-term existing investors and new strategic partners, enabling the fund to reach a successful and oversubscribed final close.

Over the past 15 years, the Direct Lending team has sourced over €10 billion in loans across more than 380 transactions. With a flexible lending mandate and a disciplined focus on capital preservation, investors gain access to a scalable source of proprietary investment opportunities that benefit from access to opportunities across the Investec platform.

Investec intends to continue expanding its alternative investment activities across the private credit spectrum. In addition to Direct Lending, Investec’s private credit capabilities include Fund Solutions, Energy and Infrastructure, Aviation and Real Estate.

Callum Bell, Head of IAIM and Direct Lending, said: “The successful final close of PDF II represents a strong endorsement of Investec’s direct lending strategy and the team’s strong track record having invested together over the last 15 years. I could not be prouder of our people who have showcased both their passion and investment expertise and our clear points of differentiation to clients over the last 12 months. They are our edge and the reason for this successful fundraising.

We are excited to continue our rapid growth in client AuM commitments, continuing our successful journey with our original investors and bringing on new strategic partners. Our investment discipline, a differentiated focus on the underserved lower mid-market, and our ability to deliver strong risk-adjusted returns through all market climes is compelling so it is very satisfying to exceed our target commitments with a material oversubscription.”