Arini set to close debut European direct lending fund at $4bn

Arini Capital Management is nearing the final stages of raising approximately $4 billion for its inaugural European direct lending fund, positioning it among the largest debut private credit funds in the region, according to a Bloomberg report. The fund, which initiated capital raising in March 2025 through a partnership with investment bank Lazard, leverages Lazard's European advisory and origination connections across the middle market.

British Columbia Investment Management Corporation (BCI) has pledged an initial $200 million anchor commitment and expects to add at least another $400 million in co-investment opportunities alongside the fund. As of now, over $3 billion has been secured, with the fund anticipated to reach its target of nearly $4 billion before the year's end, according to a source familiar with the matter.

Arini has declined to comment on the fundraising. The strategy focuses on providing direct financing to European middle-market businesses across the capital structure, with a particular emphasis on senior secured lending. Currently, the portfolio holds no exposure to the software sector, which has drawn increased investor scrutiny due to concerns over the long-term viability of software business models in light of artificial intelligence advancements.

Investor materials indicate that the fund has achieved a net internal rate of return of around 13% since its inception, aligning closely with its targeted 12% to 14% range. Founded in 2021 by former Credit Suisse trader Hamza Lemssouguer, Arini has expanded its asset base to over $20 billion across both public and private credit strategies.