P Capital Partners launches new fund to finance sustainability transition in European companies
P Capital Partners today announces the launch of PCP Transition – a credit fund fully dedicated to finance and support transition to sustainability for mid-sized companies in Europe. Technological development, regulatory requirements, and shift in consumer behavior have created a need for today’s companies to adapt to sustainable business models to stay competitive. Many companies, however, are still off track to adapt their business to manage major sustainability risks. The fund will finance companies with, or in transition to, sustainable business models, and those who enable such transition for other companies.
Supported by PCP’s long experience and strong network, PCP Transition will support and partner with companies whose business models contribute to society’s transition to sustainability in terms of reducing greenhouse gas emissions, use of limited natural resources, or protecting biodiversity. PCP Transition also continues to build on Proventus’ 50-year history of investing in companies in change and building relationships and partnerships with European companies and entrepreneurs.
In its first close, PCP Transition receives capital commitments of 550 million euro, and the fund-raising process will continue during the fall. PCP Transition will lend 10-100 million euro per transaction to mid-sized companies with proven business models in primarily the Nordics and Germany, but also Ireland, BeNeLux and the UK. The fund focuses on senior loans and has a lower risk and reward profile than PCP’s main fund. It is hence well suited to be a funder of capital-intense investments.