BNP Arm Capza Raises €1.4B for Private Debt
Capza, the alternative credit arm of BNP Paribas, raised nearly €1.4 billion at the first close of its latest mid-market private debt fund. The Luxembourg-based vehicle is designed to provide loans to mid-market companies across Europe. The successful fundraise underscores continued global institutional investor appetite for European private credit.
- This fund, Capza 6 Private Debt, exceeded its predecessor by approximately 50% and has a total investment capacity of €2.5 billion. It has already invested over 60% of its capital across 24 transactions in companies like Qconcepts in the Benelux region, Acceo in France, and Ortivity in Germany. - The vehicle is classified as an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR), indicating it promotes environmental or social characteristics. For a majority of the loans, Capza will link borrowing costs to the achievement of specific ESG key performance indicators, and a portion of the firm's own carried interest is also tied to meeting these ESG targets. - Capza's private debt strategy focuses on non-cyclical sectors such as healthcare, technology, and B2B services, targeting companies with strong financial structures and recurring revenue models. The fifth vintage of this fund family, which raised €1.6 billion, allocated 74% of its capital to the healthcare and tech sectors. - The target companies for this fund are mid-market corporates, primarily in France, Germany, Benelux, Spain, and Italy, with an EBITDA typically between €12 million and €25 million. The fund will provide unitranche and subordinated debt. - In September 2024, alternative investment manager AXA IM Alts announced its intention to acquire full ownership of Capza by 2026, moving from a majority shareholder position. This acquisition is intended to enhance AXA IM Alts' capabilities in mid-market direct lending. - The broader European private debt market is estimated to have reached €400 billion in 2025, with internal rates of return averaging 12.3% between 2023 and 2029, according to data from Preqin. While smaller than the U.S. market, the European private credit market has grown significantly as stricter banking regulations have limited traditional lending to small and medium-sized enterprises.
