Japan’s SMBC sets up private credit fund in Europe

The fund will focus on loan investments to middle market businesses.

Sumitomo Mitsui Banking Corporation (SMBC) has established a private credit fund in Europe with a fund size of €450m (approximately US$488.56m).

The fund will focus on direct, senior-secured loan investments to middle-market businesses in Europe, the Japanese megabank said in a press release.

SMBC will work with fellow subsidiary Sumitomo Mitsui DS Asset Management Co. (SMDAM) to develop investment products for investors both in Japan and abroad.

SMBC Group will provide finance-related advisory services to the fund.

Campbell Lutyens has been appointed as a third-party advisor to support the launch of the fund. 

SMBC Group noted the supposed growth trajectory of the balance of private credit growth as one of the reasons for launching the fund.