This milestone reflects a more than 100% increase in fund size compared to AshGrove's €300 million inaugural fund, making it the only independent European performing private credit fund to achieve such growth in recent years, according to Preqin data. The Firm's rapid expansion since its inception just five years ago is underpinned by a significant investment in its team and platform.

Fund II achieved a 107% re-up rate among existing limited partners and secured over €325 million in new capital commitments. In addition to strong European support, over 40% of Fund II capital comes from US based investors. The Fund now counts pension funds, endowments & foundations, insurance companies, family offices and fund of funds amongst its diversified investor base.

AshGrove harnesses its thematic expertise to 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 €10-50m of senior secured debt capital to businesses with robust business models and a high proportion of recurring revenues. Fund II has already committed ~20% of its capital across five investments, with a robust pipeline of further opportunities.

AshGrove was founded five years ago by Jon Ferguson, Phil Fretwell, and Ilkka Rantanen, a team of seasoned credit professionals with a proven track record within renowned European credit franchises. AshGrove’s first fund, which held a final close at €300 million in late 2021, is performing ahead of expectations and has already delivered several strong realisations. This first fund is benchmarking within the top 5% of European senior debt funds according to Burgiss benchmarking.

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.”

Rede Partners acted as global fundraising advisor and Weil, Gotshal & Manges acted as legal advisor for AshGrove Specialty Lending Fund II.

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