Private equity firm HIG Capital has received €7m (£6.1m) from investment trust RM Secured Direct Lending (RMDL) to finance an acquisition in Germany.
HIG has used the capital to acquire all shares in holding TierOne, which in turn holds a majority of the shares in the Bainbauer group, a producer and supplier of parts for the commercial vehicle industry.
The loan was secured against TierOne’s assets. The capital for the acquisition partly came from fund manager Beechbrook.
Pietro Nicholls, principal at RM Capital, investment managers of RMDL, said: “We are delighted to have co-invested with Beechbrook Capital in supporting HIG Capital, providing a flexible, well-structured financial solution. This acquisition financing is our largest European transaction yet, as we continue to grow and diversify our portfolio of secured, high quality debt investments.
“We believe that acquisition finance presents a significant opportunity for RM Capital given our extensive experience and understanding of the needs of sponsors and their portfolio companies.
“We remain on track to have fully deployed the proceeds of our £30 million October fund raise across our pipeline of opportunities by the end of February.”
Sandeep Agarwal, partner at Beechbrook, added: “This is our first transaction alongside RM Capital and we were pleased that they were able to support us in providing this acquisition finance to HIG Capital. They were able to act quickly to and adapt to the requirements of this transaction and we look forward to working with them again.”