The transaction reportedly involves 24 loans from Ares Capital Europe IV, with existing investors receiving approximately 1.5x their initial investment.
The continuation fund extends Synova's ownership of specialist fund services provider DM Financial while delivering a 4.7x gross return on its original investment.
The strategy, anchored by a Korean institutional investor, has adopted an evergreen semi-liquid structure aimed at capturing emerging credit secondary opportunities throughout the cycle.
The oversubscribed vehicle provides liquidity to investors in Bridgepoint Direct Lending II, which holds a portfolio of senior secured European middle-market loans.
Potential backers reportedly sought a lower valuation for the loans held in the continuation fund.
The reported deal adds to a growing list of billion-dollar transactions in the private credit secondaries space.
The reported GP-led secondary sale would rank among the largest private credit secondary deals to date.
The continuation fund will acquire a portfolio of European asset-backed finance assets.
The firm's second continuation fund delivers a 9.1x gross MOIC for Equip Capital Fund I's investment.
This deal marks the largest credit secondaries transaction to date for the 2025 SecLink Awards winner of Top Private Debt Buyer.
