Alcentra has launched a fundraising campaign aiming to secure €600 million for a dedicated fund focused on acquiring distressed debt instruments. The initiative underscores growing investor interest in high-yield, turnaround-oriented credit opportunities across Europe.
- Alcentra is raising a €600 million fund focused on distressed debt.
- Target investments include defaulted bonds, non-performing loans, and restructured securities.
- Fund is targeted at European markets with emphasis on real estate, energy, and mid-market industrial sectors.
- Expected closing date is mid-2026, with initial deployment planned later that year.
- Institutional investors have shown early interest, indicating strong demand for high-yield credit strategies.
- Strategy relies on active management and restructuring to generate returns from underperforming assets.
Alcentra is actively pursuing commitments to establish a new investment vehicle targeting leveraged and distressed debt assets across European markets. The fund's €600 million target reflects a strategic expansion of the firm’s credit strategy amid rising volatility in corporate credit conditions and increasing availability of stressed assets post-pandemic economic adjustments. The fund will focus on acquiring non-performing loans, defaulted bonds, and restructured debt securities from corporations undergoing financial or operational distress. Alcentra aims to capitalize on market inefficiencies by deploying active management and tailored restructuring solutions to achieve capital appreciation and yield generation. Investors are showing heightened appetite for private credit strategies with asymmetric risk-reward profiles. Institutional investors, including pension funds and sovereign wealth vehicles, have expressed early interest in the offering, signaling confidence in Alcentra’s track record in credit recovery and asset performance over multiple economic cycles. Market participants note that the launch aligns with broader trends in alternative credit, where demand for higher yields persists despite elevated macroeconomic uncertainty. The fund’s focus on Europe—particularly sectors such as real estate, energy transition projects, and mid-market industrials—positions it to benefit from regional refinancing pressures and corporate restructuring activity. Alcentra expects to close the fund by mid-2026, with initial investments anticipated to begin later in the year. The final size may adjust based on investor demand and market conditions.