- FADP IV closes at €2.4 billion, exceeding its €2.0 billion target and representing growth of more than 70% over its predecessor fund
- The Fund offers senior and junior debt financing to mid-market companies across Europe and North America
Five Arrows, the alternative assets division of Rothschild & Co, has announced the successful completion of fundraising for the fourth iteration of its Direct Lending strategy, Five Arrows Debt Partners IV (“FADP IV” or the “Fund”). Together with its associated vehicles, the Fund secured commitments of €2.4 billion – well above its €2.0 billion target and more than 70% larger than its predecessor, which closed at €1.4 billion.
This fundraising success is seen as a strong endorsement of the Five Arrows direct lending strategy, as well as of the strength and resilience of the asset class in today’s macroeconomic and geopolitical environment.
FADP IV provides tailored and flexible financing solutions for mid-market businesses in Europe and North America. Investments span the capital structure, from senior-secured unitranche loans to junior instruments including second lien, mezzanine, and PIK facilities, alongside preferred equity structures. In addition to backing private equity sponsors, the Fund also delivers bespoke lending options to family- and entrepreneur-owned firms.
Deployment has already gained momentum, with more than 50% of the Fund committed across 19 transactions. In keeping with the broader Five Arrows platform, these investments are concentrated in resilient, high-growth sectors such as data, software, IT services, healthcare, education, and business services – sectors that have been the focus of the strategy since its inception in 2012.
FADP IV follows the successful Five Arrows Debt Partners III, Five Arrows Direct Lending, and Five Arrows Credit Solutions funds. It is managed by an experienced team of 26 professionals of 10 different nationalities, based across London, Paris, New York, and Luxembourg.
The fundraising attracted strong backing from a globally diverse investor base including pension funds, insurance companies, and leading financial institutions, as well as family offices and high-net-worth investors. Repeat investors accounted for 70% of total commitments, while both Rothschild & Co and the Fund’s executives also made significant commitments.
Edouard Veber, Co-Managing Partner of the Fund, said: “We are delighted with the success of the FADP IV fundraising and are grateful for the trust and support from both our existing as well as new investors. We are particularly pleased to have such a significant proportion of repeat investors from our previous direct lending funds, as well as from across the broader Five Arrows platform.”
Martin Hook, Co-Managing Partner of the Fund, added: “We believe that the combination of our experienced team, proven track record and focused and selective investment strategy, supported by the global Rothschild & Co network, has made FADP IV an attractive proposition for a diverse group of sophisticated international investors.”
The closing of FADP IV takes Five Arrows’ total assets under management to more than €29 billion¹.
FADP IV has been classified as an Article 8 fund under SFDR.
