France-based asset manager Eurazeo closed its flagship European direct lending fund, Eurazeo Private Debt VII (EPD VII), at a record €3.9 billion (US$4.52 billion) in commitments from institutional and private wealth investors worldwide to finance lower-mid-market companies across Europe.

Eurazeo Private Debt VII (EPD VII) is the seventh vintage of the flagship direct lending strategy managed by Eurazeo. The fund reached a record €3.9 billion final close, comfortably surpassing its initial fundraising target of €3 billion (US$3.5 billion). The successful raise reflects strong investor confidence in Eurazeo's private debt platform and continued demand for exposure to European lower-mid-market companies, a segment that has increasingly turned to private lenders for financing. 

The broader seventh private debt program reached €5.5 billion when including co-investments, institutional mandates, and nearly €1 billion raised from private wealth investors. More than 60% of commitments came from international investors, particularly from North America and Asia, highlighting the growing global appeal of European private credit as an asset class. 

EPD VII focuses on direct lending, providing senior and unitranche financing to established lower mid-market businesses across Europe. The strategy aims to offer companies flexible, long-term capital while generating attractive risk-adjusted returns for investors. Eurazeo's private debt team operates across major European financial centers, including Paris, London, Frankfurt, Milan, Madrid, and Stockholm, giving the firm broad sourcing and execution capabilities throughout the region. 

The fund is already significantly deployed, with approximately 65% of capital invested. To date, Eurazeo has committed around €2.5 billion across more than 70 European companies, demonstrating its ability to deploy capital efficiently despite a challenging financing environment. The new fund builds on the success of Eurazeo Private Debt VI, which closed at €2.3 billion in 2023, marking substantial growth in the firm's private debt franchise. For Eurazeo, the fundraising underscores the strategic importance of private debt within its broader alternative asset management platform. The firm's private debt assets under management now exceed €11 billion, representing roughly 29% of total assets under management, and reinforcing the strategy's position as a key growth engine for the firm.