Alternative credit manager Alcentra Ltd. is raising a new fund to invest in special situations, according to people familiar with the matter. The vehicle is targeting €600 million in commitments, focusing on opportunities in distressed debt and complex corporate restructurings across Europe.

This move comes as many traditional lenders pull back from riskier assets. Private credit firms like Alcentra are stepping in to fill the gap, leveraging their expertise to manage non-performing loans and turn around struggling businesses. The fund’s strategy aligns with a growing appetite for alternative investments amid economic uncertainty.

Investors will watch how Alcentra deploys the capital, particularly in sectors hit hard by inflation and higher interest rates. Success in this fund could cement its position in the competitive private credit space, where specialized managers are increasingly sought after for their ability to navigate complex financial distress.