Arini closes inaugural European direct lending fund with $4bn-plus deployment target

Arini has closed its inaugural European direct lending fund, Alternative Credit Investor reported. Arini Direct Lending Fund I drew commitments from pensions, sovereign wealth funds and other financial institutions across North America, Europe and the Middle East. It is targeting deployment of more than $4bn including anticipated leverage and has so far invested close to $2bn across sectors and geographies.

The portfolio holds senior secured loans to founder-led, family-owned and sponsor-backed businesses with recurring and underwritable cash flow profiles in industries with limited risk of disruption, Arini said. Founder and chief investment officer Hamza Lemssouguer said, "De-banking in Europe is creating a major supply/demand imbalance in favour of middle market lenders." He added that the portfolio has conservative leverage metrics and strong loan documentation, with deal flow from a variety of sourcing channels. Origination is supported by a strategic sourcing alliance with Lazard and Arini's relationships with banks, according to the report.

The $4bn-plus figure is a deployment target including anticipated leverage, not a disclosed fund size. The report does not give committed capital or the leverage assumption. Arini, founded in 2021, manages about $22bn and employs more than 180 professionals globally.