FRANCE: Fundraising underway for third Rivage high yield debt fund, first close in sight

Rivage Investments has launched fundraising for its third high yield debt fund, REDI HR 3, for which it has a EUR 1.2bn final target and a EUR 1.5bn hard cap, it is understood.

The Paris, France-based fund manager has in recent days participated in two large-scale subordinated holdco financings, for Baltics IPP Sunly and Italy-focused Enfinity Global respectively, and with its EUR 745m second high yield fund believed to be circa 80% deployed, it is now stepping up fundraising efforts for the third vintage of the strategy.

The group is believed to be aiming for a first close on REDI HR 3 by October, at which point it will be able to start deploying capital from the vehicle.

AXA IM Prime, which through its GP Stake strategy agreed the acquisition of a 20% equity stake in Rivage Investment earlier in the summer, is set to be a cornerstone LP on the fund.

REDI HR 3 will have a similar focus to Rivage’s previous high yield fund vintages, albeit with some broader exposure to other infra sectors.

Energy transition sectors, alongside transport, waste management and telecommunications, will remain a key part of the mandate for the vehicle, which is targeting net IRRs of 8-9% for its investors.

The group's participation in the circa 4-5 year Sunly holdco financing is mooted to be set to generate a return of around 9%, for example.

In addition to its recent Sunly and Enfinity Global deals, Rivage is understood to be closing in on its first EV investment and is looking closely at battery storage opportunities.

Rivage reached a final close for REDI HR 2 in April 2022.

*This story was originally published exclusively for NPM Europe subscribers.

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