London-based Claret Capital Partners has held the final close of Claret European Growth Capital Fund IV at €575m, ahead of a €500m target and up from the €350m second close announced a year ago. More than 90% of the capital came from institutions, including the British Business Bank, the European Investment Fund, Germany's KfW and Ireland's ISIF.
Claret lends to growth-stage technology, life sciences and impact companies rather than buying equity, positioning itself in the part of the capital stack founders reach for when they want to extend runway without repricing the cap table.
The final close breaks down as €440m of direct commitments and €135m from affiliated discretionary mandates. A further €70m was raised through Banca March, the Spanish private bank, using an ELTIF structure aimed at high-net-worth individuals. Family offices and direct commitments from entrepreneurs account for the remaining tenth of the fund.
Managing partner David Bateman said the firm is now Europe's largest independent, team-owned manager of growth debt on the measures of capital raised, assets under management and portfolio company count. The team has deployed more than €1.3bn since 2013 across over 210 companies.
The mechanics are built around relending rather than single cheques. Initial facilities typically run from €2m to €5m and are increased as revenue scales, so a borrower can draw repeatedly without returning to the equity market. Open Cosmos, the UK and Spain-based satellite firm, started with a €3.2m facility and has since drawn more than €50m as annual revenue rose from about €2m to over €50m. Munich's Holidu began with €4m to €5m and has since borrowed in excess of €100m.
Fellow managing partner Johan Kampe said demand for non-dilutive capital should keep accelerating while equity markets remain selective and founders look to avoid unnecessary dilution.
Existing portfolio names include Butternut Box, the UK dog food subscription business, Swedish clinical-stage group Cinclus Pharma, payments firm Paysend and Irish customer intelligence company EdgeTier. Claret also participated in a €130m financing for Inventiva in June.
Fund IV will tilt further towards deeptech, semiconductors and dual-use technology with defence applications, tracking where venture equity has moved. Bateman said the firm screens for commercial traction, a founding team with a delivery record, and a cap table structured for long-term growth rather than an early sale — adding that because Claret lends rather than owns, it applies no institutional pressure on exit timing.
The firm employs 31 people, has opened a Paris office and expects to hire in Berlin before the end of the year.
The scale of state-backed participation is notable for UK founders: the British Business Bank's presence alongside the EIF, KfW and ISIF means a substantial share of this non-dilutive pool is underwritten by development finance institutions rather than commercial credit funds.
Original source: Tech Funding News — https://techfundingnews.com/claret-capital-raises-e575m-to-back-european-tech-and-life-sciences-beyond-equity-dilution/
