NEWSLETTER

By clicking submit, you agree to share your email address with TFN to receive marketing, updates, and other emails from the site owner. Use the unsubscribe link in the emails to opt out at any time.

London-based AshGrove Capital closes €650M Fund II: Can it disrupt European private credit landscape?

AshGrove Partners
Picture credits: AshGrove Partners

London-headquartered AshGrove Capital, an independent pan-European specialty lender, has announced the final close of AshGrove Specialty Lending Fund II at the hard cap of €650 million, surpassing its target of €500 million. This is a 100% increase in fund size than its previous €300 million Fund I. 

The recently closed Fund II achieved a 107% re-up rate among existing limited partners (“LPs”) and secured over €325 million in new capital commitments. Over 40% of Fund II capital comes from US-based investors. It’s investor base includes pension funds, endowments & foundations, insurance companies, family offices, and funds of funds. 

This fund follows the $75 million fund by Portal Ventures and the $140 million fund by Founderful.

Investment strategy 

AshGrove harnesses will provide tailored credit solutions to small and medium-sized European companies in B2B software and services. Operating below the radar of traditional European direct lenders and working with both sponsors and founders, AshGrove specialises in lending €10 million to €50 million of senior secured debt capital to businesses with robust business models and a high proportion of recurring revenues. 

Ashgrove Capital’s investment portfolio 

Fund II has already committed nearly 20% of its capital to five investments and has a robust pipeline of further opportunities. That said, here are some portfolio companies backed by Ashgrove Capital. 

  • Proactis (2023): UK-based business spend management software.
  • Position Green (2024): Swedish ESG software platform supporting sustainability and advisory services.
  • Hanzo (2024): UK-based e-discovery and data archiving software. 
  • NewsWhip (2023): Irish competitive intelligence platform​. 
  • Zift Solutions (2023): A US SaaS-based channel sales platform for enterprises. 

Can it disrupt European private credit landscape?

AshGrove was founded five years ago by Jon Ferguson, Phil Fretwell, and Ilkka Rantanen, a team of seasoned credit professionals. It focuses on senior secured investments in companies with resilient business models within B2B software and services, building long-term partnerships with businesses and their stakeholders. It covers sectors such as software, services, and healthcare​. 

Fund I is benchmarking within the top 5% of European senior debt funds according to Burgiss benchmarking. Focusing on senior secured debt, it targets resilient European B2B software and services firms, bridging a gap in SME credit access. The Fund II strengthens niche sectors, making private credit more inclusive and impactful across Europe. 

Its approach to responsible investing is through a broad lens and does not view it as risk reduction but equally as importantly, an opportunity for enhanced value creation throughout its portfolio companies. Promoting responsible and sustainable business practices in the companies, Ashgrove Capital will invest not only to enhance investment performance but will contribute to sustainable benefits for the economy, environment, and society.

Phil Fretwell, co-founder and Partner at AshGrove, said: “As an independent firm started from scratch just five years ago, doubling our fund size and hitting the hard cap is a huge milestone. None of this would have been possible without the skill and determination of our team. When we established the Firm, we saw a structural opportunity in the European lending market to back small and medium-sized companies with resilient, non-cyclical business models within B2B software and services. We believe access to credit should not be a function of business size, but quality of business model. We are enormously grateful that our existing LPs and many new investors share our vision and believe in our ability to continue delivering on that opportunity.”

Related Posts
Total
0
Share

Get daily funding news briefings in the tech world delivered right to your inbox.

Enter Your Email
join our newsletter. thank you