Key Takeaways
- Geography: Switzerland.
Analysis
DECALIA has finalised a stronger-than-expected raise for its second private credit vehicle, with DECALIA Private Credit Strategies II closing at €311m, comfortably above the manager’s original €250m target. The result marks more than a 2.5x increase on the firm’s prior vehicle and lands as appetite for private credit in Europe continues to climb.
The fund’s tempo surprised some market participants: by the time of final close the vehicle had already executed 24 deals and was reported to be over 80% deployed. DECALIA says this rapid allocation was possible because the strategy focuses on less crowded niches of the private debt universe, blending co-investments, secondary purchases and partnership structures to access differentiated risk-return opportunities.
Portfolio leadership framed the outcome as validation of a targeted sourcing approach. Reji Vettasseri, named lead portfolio manager of the DPCS strategy, highlighted the growth in demand for creative financing among European borrowers and a corresponding LP appetite for specialised credit exposures that can deliver premium returns without taking unconstrained risk. Reji Vettasseri emphasised the team’s objective of delivering double-digit net returns through selective underwriting and active portfolio management.
Partner and co-portfolio manager Nicolò Miscioscia described the raise as a milestone for DECALIA’s credit franchise, noting investor interest in strategies that marry speed of execution with strict risk controls. Founded in Geneva in 2014, DECALIA now runs a mix of liquid and private market products and reports more than CHF 5.6 billion in assets under management across its platforms, supported by a staff of roughly 70 employees.
European private credit AUM has expanded materially over recent years — market estimates place the continent’s private debt stock at several hundred billion euros — as banks retreat from certain mid-market segments and institutional investors chase yield in a low-rate era. DECALIA’s emphasis on secondary and co-investment positions also echoes a broader trend: managers are blending traditional direct lending with ancillary strategies to manage deployment risk and enhance pick-and-shovel returns.
DECALIA, regulated by FINMA and a member of the Swiss Association of Asset Managers, stresses its investment philosophy of talent selection, capital preservation and stringent risk controls as the guardrails for DPCS II.