Bridgepoint Credit has transferred €1.2 billion ($1.4 billion) of loans from an older direct-lending fund into a new continuation vehicle, according to a statement seen by Bloomberg. Pantheon Ventures is the lead investor in the deal, which gives investors in the fund, Bridgepoint Direct Lending II, the option to cash out or roll over their holdings. The new vehicle will hold senior secured loans to European middle-market companies originated by BDL II, Bridgepoint’s 2017-vintage fund.

The transaction represents a significant move in the private credit market as firms seek to manage legacy fund exposures while providing liquidity options to investors. Bridgepoint Direct Lending II, launched in 2017, has been a key part of the firm’s direct lending platform. The continuation vehicle structure allows existing investors to maintain exposure to the underlying assets or exit the investment.

Pantheon Ventures, a global private markets investment manager, is facilitating the deal as the primary buyer of the loan portfolio. The move reflects broader trends in private credit where general partners use continuation vehicles to extend the life of successful funds or restructure underperforming ones.