AshGrove Capital Closes Fund II At €650 Million Hard Cap, More Than Doubling Fund Size

AshGrove Capital, an independent pan-European specialty lender, announced the final close of AshGrove Specialty Lending Fund II at the hard cap of €650 million, surpassing its target of €500 million. 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.

We are pleased to have supported Ashgrove with this highly successful fundraise. Fund II achieved a 107% re-up rate among existing limited partners and secured over €325 million in new capital commitments. The Fund’s diversified investor base includes pension funds, endowments & foundations, insurance companies, family offices and fund of funds. In addition to strong European support, over 40% of Fund II capital comes from U.S. based investors.

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.

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.

Rede is proud to have partnered once again with AshGrove on this successful fundraise, having worked with AshGrove on its debut fund which held a final close at €300 million in late 2021.