BNP Paribas-backed Capza has secured nearly €1.4 billion at the first close of its seventh private debt fund, approaching half its €3 billion target. The fund will provide unitranche loans and subordinated debt to small and medium-sized companies across Europe, reflecting sustained institutional appetite for European direct lending.

Christophe Fritsch, Head of Alternative Credit at BNP Paribas Asset Management Alts, noted the firm aims to reach its €3 billion final close, with the first tranche already achieving 50% of the target. International capital is playing a growing role, with increased demand from Japan, Korea, Canada, and the Middle East investors seeking exposure to European private credit markets.

Capza Private Debt Co-Head Christophe Vulliez emphasized the firm's underwriting discipline, stating they reject covenant-lite deals and conduct special due diligence on potential AI disruption for every transaction. BNP Paribas Asset Management Alts oversees approximately €135 billion in private debt and alternative credit assets, positioning Capza as a major European player in a market increasingly shaped by global capital flows and tighter risk management standards.