PDFI, launched in January 2021, is a close-ended Luxembourg-based special limited partnership. It focuses on providing senior secured debt (including unitranche) and subordinated debt for PE and corporate backed businesses between €3m-€75m EBITDA primarily based in the UK, Ireland, Benelux, and DACH regions.
In December 2021, Investec announced that the fund was over 70% committed, having completed 21 transaction allocations in the first year since it launched.
Investec’s Callum Bell commented:
“To materially increase the size of this fund after just a year shows how successful the combination of bank balance sheet capability with fund capital has been in supporting growing companies and providing high risk-adjusted returns to investors. It also highlights both our strong origination capabilities and our ability to build diversified direct lending portfolios.”
The fund has a primary focus on growth orientated lower- and mid-market businesses across its target geographies, which remain underserved by banks and fund providers.
The fund is managed by Investec’s Growth & Leveraged Finance team – headed by Callum Bell – consisting of 40 investment professionals, all with extensive UK and European growth capital and leveraged finance experience. Investec has more than 10 years’ experience originating, investing and managing private debt assets and has originated more than €6 billion in loans across more than 350 deals over that period. The team has a strong track record of credit selection and delivering premium risk adjusted returns combined with a low default rate.
The fund is able to invest in all eligible investments originated by the manager leveraging the full breadth of the Investec platform. The fund gives its investors immediate and scalable access to a proprietary source of investments that benefit from Investec’s flexible lending mandate and a proven investment team.