Investec Alternative Investment Management (IAIM), a subsidiary of Investec Bank plc, and Carlyle AlpInvest have jointly announced the launch of Investec’s first European senior debt fund, named Investec Senior Debt Fund I (SDF I). The private credit fund will be managed by the Investec Direct Lending team and has around €400 million in investable capital.
The creation of SDF I involved a structured secondary credit transaction led by Carlyle AlpInvest. This included the secondary purchase of performing loans from Investec’s balance sheet to create an initial portfolio for the fund. In addition, Carlyle AlpInvest contributed new capital to support future direct lending investments.
SDF I is structured as a close-ended special limited partnership based in Luxembourg. It will focus on providing traditional senior secured loans to European private equity and corporate-backed businesses with EBITDA between €3 million and €50 million. The primary geographic focus includes the UK, Ireland, Benelux, and DACH regions. The strategy targets companies in the lower mid-market segment, which is described as underserved by banks and other fund managers.
The Direct Lending team at Investec consists of more than 50 investment professionals with over 15 years’ experience in growth capital, leveraged finance, and direct lending across Europe. According to information provided by the company, this team has invested over €10 billion in private debt through more than 350 transactions during that period.
The new fund follows previous launches by Investec such as its Private Debt Fund I in 2021, which raised €250 million for stretched senior and unitranche direct lending solutions. A second fund (PDF II) is expected to close soon with a target size of €500 million.
Callum Bell, Head of Direct Lending and IAIM at Investec, said: “The launch of this senior loan fund marks an important milestone for our alternatives platform, and we are delighted to have partnered with Carlyle AlpInvest. It enables us to showcase the full breadth of the team’s sourcing and underwriting capabilities across the European private debt market.
“We are actively and strategically growing into new adjacencies to strengthen our platform and to offer investors access to tailored risk-reward profiles across our sourcing spectrum. This new fund represents an exciting step forward as we pursue our growth ambitions over the next five years.”
Mike Hacker, Partner and Global Head of Portfolio Finance at Carlyle AlpInvest, stated: “This transaction highlights the strong momentum within Investec’s direct lending franchise and the depth of its relationships with leading sponsors. AlpInvest has a long history of partnering with leading financial institutions to provide solutions as they scale and broaden their asset-management capabilities, and this collaboration with Investec is a natural extension of that strategy. Our involvement in establishing SDF I underscores our commitment to building differentiated partnerships with high-quality credit managers. We’re excited to support Investec as it expands its senior lending platform and to further strengthen AlpInvest’s position as a partner of choice for private credit managers.”
Advisors on this transaction included Ely Place Partners; legal counsel was provided by Travers Smith for Investec and Kirkland & Ellis (K&E) for Carlyle AlpInvest.
Carlyle AlpInvest manages $102 billion in assets globally as of September 30, 2025. The firm works with more than 700 investors worldwide.
