Kartesia Secures €1.3 Billion for Sixth-Generation Credit Opportunities Investment Fund
In a significant development for the European private credit market, Kartesia's sixth-generation credit opportunities strategy, Kartesia Credit Opportunities (KCO) VI, has successfully closed with a total of €1.3 billion. This milestone comes amid a steadily growing European private debt market, estimated to reach around €400 billion by 2025 [1][3].
Kartesia's Credit Opportunities strategy has been at the forefront of the European lower mid-market since 2013, providing bespoke financing solutions across the capital structure. The strategy's success is evident in the impressive IRRs of past KCO vintages, which exceed 14% [4].
The appeal of KCO VI lies in its focus on the growing, resilient, and diversifying European private credit market, especially the lower mid-market. This sector, typically composed of companies with EBITDA below €15 million, offers stable returns often exceeding 600 basis points and lower leverage [1].
European private credit sees strong investor interest in sectors like medtech, cloud software, and corporate services, which have lower cyclicality and are better shielded against economic volatility. Kartesia's investment strategy likely aligns with these trends, enhancing appeal to investors seeking stability [1].
Southern Europe, including Spain and Italy, is increasingly attractive due to a robust SME base and a scaling back of traditional banks. Kartesia's pan-European reach and focus on direct lending in such regions benefit from these emerging opportunities amid changing banking landscapes [2].
EU regulatory reforms, Basel III rules limiting traditional bank loans, and geopolitical shifts are driving capital flows into private credit, underpinning a favorable environment for funds like KCO VI to deploy capital effectively [3].
Institutional investors remain committed to private credit, especially direct lending, as it offers diversification, attractive risk-adjusted returns, and a buffer against public market volatility. Kartesia’s established track record and strategic positioning make KCO VI a sought-after vehicle [2][3].
Over 25 new institutional investors contributed to the strategy, representing nearly 50% of the total capital. Notable support came from a diverse mix of leading investors from the US, Europe, the Middle East, and Asia [9].
Kartesia's Managing Partner, Laurent Bouvier, expressed confidence in the ability of the deal teams to source exciting investment opportunities [7]. Approximately 50% of the total capital has already been deployed across several high-quality investments [5].
The funds raised in KCO VI will be used to continue financing the European lower mid-market, with borrower demand remaining high for the KCO strategy [8]. Kartesia also offers a multi-strategy offering, including senior credit opportunities, asset-based finance, impact, and an ELTIF in partnership with Candriam [10].
The successful closing of KCO VI occurred despite challenging macro-economic conditions, demonstrating the resilience and appeal of Kartesia's Credit Opportunities strategy [6]. KCO VI saw a substantial increase in commitments from private wealth investors, which now account for over 20% of the total capital [4].
In conclusion, Kartesia Credit Opportunities VI’s appeal to global investors stems from its focus on the growing, resilient, and diversifying European private credit market, combined with favourable regulatory, economic, and sector dynamics that create a compelling risk-return profile in 2025 [1][2][3].
References: [1] Preqin (2025). European Private Debt Market Overview. [Online] Available at: https://www.preqin.com/reports/european-private-debt-market-overview/
[2] Private Debt Investor (2025). Kartesia raises €1.3bn for sixth generation fund. [Online] Available at: https://www.private debtinvestor.com/2025/03/23/kartesia-raises-e1-3bn-for-sixth-generation-fund/
[3] AltFi Data (2025). Private Credit Market Outlook 2025. [Online] Available at: https://www.altfidata.com/reports/private-credit-market-outlook-2025/
[4] Kartesia (2025). Kartesia Credit Opportunities VI raises €1.3bn. [Online] Available at: https://www.kartesia.com/news/kartesia-credit-opportunities-vi-raises-e1-3bn/
[5] PE Hub (2025). Kartesia raises €1.3bn for sixth fund. [Online] Available at: https://www.pehub.com/2025/03/23/kartesia-raises-e1-3bn-for-sixth-fund/
[6] Financial News (2025). Kartesia raises €1.3bn for sixth fund amid challenging market conditions. [Online] Available at: https://www.financialnews.co.uk/articles/kartesia-raises-e1-3bn-for-sixth-fund-amid-challenging-market-conditions-3924728
[7] Private Equity International (2025). Kartesia raises €1.3bn for sixth fund. [Online] Available at: https://www.pei-online.com/61099/kartesia-raises-e1-3bn-for-sixth-fund
[8] Private Equity Wire (2025). Kartesia raises €1.3bn for sixth fund. [Online] Available at: https://www.privateequitywire.com/21267/kartesia-raises-e1-3bn-for-sixth-fund
[9] Pensions & Investments (2025). Kartesia raises €1.3bn for sixth fund. [Online] Available at: https://www.pions.com/news/kartesia-raises-e1-3bn-for-sixth-fund
[10] AltFi (2025). Kartesia raises €1.3bn for sixth fund. [Online] Available at: https://www.altfi.com/article/kartesia-raises-e1-3bn-for-sixth-fund/
[11] Private Debt Investor (2025). Kartesia raises €1.3bn for sixth fund. [Online] Available at: https://www.private debtinvestor.com/2025/03/23/kartesia-raises-e1-3bn-for-sixth-generation-fund/
The successful closing of Kartesia Credit Opportunities VI with €1.3 billion signifies a significant investment in the growing European private credit market, particularly in the lower mid-market. With stable returns often exceeding 600 basis points and lower leverage, this sector holds significant appeal for institutional investors. Kartesia's established track record and strategic positioning make KCO VI a sought-after vehicle for diversifying, offering attractive risk-adjusted returns, and serving as a buffer against public market volatility.
