BCI anchors US$200 million in Arini fund as part of global push into mid-market private lending
British Columbia Investment Management Corporation (BCI) has made a US$200m anchor investment in the Europe-focused Arini Direct Lending Fund and plans to allocate more than US$400m in additional co-investments, according to a company statement.
The move expands BCI’s access to European private credit while aligning with its strategy to diversify its global portfolio.
The Arini Direct Lending Fund, launched by Arini Capital Management, provides junior and senior loans to mid-sized European companies.
The fund combines Arini’s credit underwriting capabilities with Lazard Inc.’s corporate advisory network for deal origination.
Arini and Lazard first announced their alliance in March, targeting direct lending opportunities across Europe, the Middle East and Africa.
According to the press release, BCI expects to participate in co-investment opportunities when loan facility sizes exceed the fund’s portfolio concentration limits.
The partnership is designed to provide tailored financing to mid-market borrowers at a time when traditional bank lending is contracting.
Daniel Garant, executive vice president and global head of Public Markets at BCI, said the initiative gives them access to Europe’s private credit sector and supports the growth of mid-market businesses.
“This initiative not only provides us access to Europe’s vibrant private credit sector,” he said, “but also positions us well to help deliver high-quality, risk-adjusted returns for our clients.”
As reported by Bloomberg, including BCI’s commitment, the Arini Direct Lending Fund has US$1bn in investable capital at first close, including leverage, according to a person familiar with the strategy.
Arini declined to comment.
BCI’s investment comes amid its broader efforts to increase exposure to the US$1.7tn private credit market.
As per the company’s statement, BCI deployed around US$2bn in private debt in the fiscal year ending March 2024, focusing on opportunities in the middle and lower middle markets while expanding the program to Asia.
Private debt delivered a 13.3 percent return over the same period.
