Blackstone closes €13bn in European direct lending capital

Blackstone closed €13 billion of investable capital for its European direct lending strategy and announced the final close of Blackstone European Senior Direct Lending Fund IV on Nov. 4. The total spans BXDE IV and other European direct lending vehicles and includes anticipated leverage, the firm said.

Alternative Credit Investor first reported the close. The fund targets European borrowers across the size spectrum, with a focus on the middle and upper-middle market, according to the firm. Since BXDE IV launched, Blackstone said it has committed capital to European companies and taken lead lender roles in transactions including Angelini Pharma's take-private of Catalyst Pharmaceuticals (€1 billion), Regnology (€780 million), Odevo (€649 million) and JTC (€382 million). At the sizes given, the four sum to about €2.8 billion.

For allocators comparing European managers, €13 billion is a scale figure that includes anticipated leverage rather than committed fund capital. The number that lines up against a rival European vehicle is what investors commit to a single fund, and BXDE IV is only one of the vehicles counted in the total, so its own commitments are smaller than €13 billion.

The close lands after a difficult stretch for direct lending in the US, where some funds have been hit by redemption requests amid concerns about software exposure and loan quality, Alternative Credit Investor reported. Managers told the outlet that investors have looked to European private credit as a diversifier away from the US over the past two years, a trend the outlet said could continue into 2027. As Private Credit Daily previously reported, First Eagle cut its payout as HLEND and BCRED rationed exits.

"This fundraise reflects investors' confidence in private credit and our ability to deliver scaled financing across market cycles," said Brad Marshall, global head of private credit strategies at Blackstone Credit & Insurance. Mike Carruthers, European head of private credit strategies at the same unit, said Europe remains one of the most attractive private credit markets globally, with borrowers valuing "the certainty, scale and flexibility we provide."

Blackstone is looking to invest more than $500 billion of assets in Europe by 2035 and says credit is a significant part of the opportunity.