Eurazeo has raised EUR 480 million for a private debt continuation vehicle, with Pantheon backing the fund at close. The Paris-based investment firm said the continuation fund will hold existing loans from Eurazeo's legacy private debt platforms.

The structure provides Eurazeo with fresh lending capacity to support European middle-market companies while allowing existing investors in the legacy platforms an opportunity to exit or roll their positions. Pantheon's participation as anchor investor brings institutional validation to the continuation vehicle structure in European private credit.

Continuation funds have become increasingly common in private equity but remain a relatively nascent phenomenon in private credit markets. The structure allows general partners to extend the holding period of attractive assets while providing liquidity to limited partners seeking distributions.

The transaction reflects broader trends in European private debt portfolio management. As the asset class matures and legacy portfolios season, GPs are exploring secondary market solutions to optimize their capital structures and extend relationships with high-performing borrowers.

Eurazeo has been an active participant in European private credit markets, with a focus on providing financing to middle-market companies across the continent. The firm's private debt business sits alongside its private equity and real assets strategies, giving it visibility into sponsor-backed financing opportunities.

The fundraise comes during a period of strong demand for European private credit strategies. The region saw record fundraising of EUR 56 billion through the first nine months of 2025, representing 35% of global private debt capital raised during that period. Market participants expect European private credit fundraising to grow by a further 20% in 2026.

For limited partners, continuation vehicles offer the potential to gain exposure to seasoned portfolios with established track records while avoiding the J-curve typically associated with new fund commitments.