Allen & Overy advises ZENCAP AM on the launch of Zencap Direct Lending IV fund

Allen & Overy has advised Zencap Asset Management, a specialized private debt management company within the Ofi Invest group, on the launch of the Zencap Direct Lending IV fund, its fourth vintage of corporate private debt.

The first closing, concluded at the end of November 2023, reached 225 million euros (including a parallel dedicated fund). The fund aims for assets under management exceeding 500 million euros.

This new fund invests in senior unitranche debt in the Small & Lower Mid Cap segment, primarily in France, and potentially in the Eurozone. Regarding Environmental, Social, and Governance (ESG) commitment, the Zencap Direct Lending IV fund, classified as SFDR - Article 8, aims to support SMEs and mid-sized companies in their sustainability efforts with tailored objectives for each company and 100% issuance of Sustainability Linked Bonds (SLB).

This fourth vintage is at the core of Zencap AM's strategy to be a pivotal alternative financier for French SMEs and mid-sized companies, with the ambition to contribute to the growth and transformation of the French economic fabric. This strategy aligns with the dynamics of the ETIncelles program, initiated in November 2023 by the French government, which aims to bring forth an additional 500 mid-sized companies by 2027.

The Allen & Overy team was led from Paris by partner Antoine Sarailler, partner Mathieu Vignon with support from counsel Benjamin Lacourt and associate Roxane Gallais.

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