London-listed Bridgepoint Group is raising approximately €5 billion ($5.8 billion) for its fourth European direct lending fund, exceeding an initial target of €4 billion. The new vehicle, Bridgepoint Direct Lending IV, will surpass its predecessor that closed in 2024 with more than €3.4 billion of investable capital. A spokesperson declined to comment on the fundraising.

The capital raise comes as direct lending gains traction as an alternative to traditional bank financing in Europe. These loans offer investors higher yield premiums, stronger downside protection, and tighter structural documentation than in the US market, making Europe-focused funds more attractive amid challenges facing American private credit firms.

Bridgepoint has expanded its credit business significantly since acquiring EQT AB's credit unit in 2020. The firm now manages about €17 billion of assets in corporate credit across three investment strategies: direct lending, credit opportunities, and syndicated debt, underscoring European investors' growing appetite for private credit.