Key Takeaways
- Geography: United Kingdom.
Analysis
CVC Credit, the credit management division of CVC, has completed the final close of its fourth European Direct Lending fund (EUDL IV), securing €10.4 billion to invest across European private credit markets. This represents a substantial increase over previous fundraises of €6.3 billion in 2022 and €1.3 billion in 2020.
The growth of CVC’s direct lending strategy has been driven by its deep European network, with operations across 16 offices in Europe, and the firm’s presence in the region for over four decades.
Rob Lucas, CEO of CVC, noted that this outcome reflects the strong performance of the strategy and trusted relationships with global institutional investors. He emphasized that CVC’s Credit platform has become a vital pillar of its long-term strategy in insurance and private wealth. Today, CVC’s Liquid and Private Credit strategies represent nearly 25% of the firm’s total assets under management.
Andrew Davies, Managing Partner and Head of CVC Credit, highlighted the structural growth of the European private credit market. He stated that EUDL IV has already deployed capital into over 30 transactions, including:
- Financing KKR’s buyout of Immedica Pharma
- Backing the growth strategy of smartTrade
- Supporting Cinven’s acquisition of idealista
- Acting as sole lender for Innovative Beauty Group
- Facilitating Bridgepoint’s delisting of Alpha FMC from the London Stock Exchange
As of now, CVC Credit manages over €48 billion in total assets, including €43 billion in fee-paying AUM. Its Private Credit platform—which includes European Direct Lending and Capital Solutions—accounts for over €18 billion.
The strong investor interest in EUDL IV aligns with broader global trends in private credit. Comparable fundraises include:
- Blackstone Credit closing a flagship direct lending fund above target in 2025, reflecting demand for yield-rich private debt solutions
- TPG raising approximately $8 billion for its global direct lending vehicles in 2024
- Oaktree Capital completing a $10 billion close for its open-ended opportunistic credit fund
- KKR Credit expanding in sponsor-backed lending across Europe and Asia
- Ares Management increasing allocations toward infrastructure and senior private credit, following strong limited partner demand
These examples highlight a growing investor shift toward private credit strategies that offer attractive risk-adjusted returns, downside protection, and structural seniority. With EUDL IV, CVC reinforces its position among the top three private credit managers in Europe and is well-positioned to capitalize on the region’s expanding financing needs.