Claret Capital Partners has closed its fourth European growth debt fund at €575m, creating additional financing capacity for European life sciences companies alongside technology and impact businesses.

The fund exceeded its original €500m target and comprises €440m of direct commitments and €135m of affiliated discretionary mandates. Claret said 32% had already been deployed across 27 companies, including pharmaceutical and biotechnology businesses, according to its Fund IV announcement.

Claret is a London-based growth debt manager providing financing to European businesses that have moved beyond early-stage venture funding. Its model gives companies access to debt capital without requiring them to issue additional equity, potentially allowing existing investors to retain a larger ownership position as businesses scale.

Life sciences is an important part of the firm's investment strategy. Fund IV has already backed Cinclus Pharma, a clinical-stage pharmaceutical company developing treatments for gastric acid-related diseases. Claret provided €28m in growth funding to Cinclus Pharma as part of the company's financing.

Claret has also participated in a €130m financing for Inventiva, a clinical-stage biopharmaceutical company developing treatments for metabolic diseases. The Inventiva financing included €43m from Claret and demonstrates the role growth debt can play in supporting companies through lengthy development programmes.

For pharmaceutical and biotech businesses, growth debt can provide an alternative source of capital during expensive development and commercialisation stages. Clinical programmes, regulatory activity and preparations for market entry can require substantial funding before revenues fully reflect the investment being made.

The scale of Fund IV also reflects growing institutional interest in alternative financing for European growth companies. Claret says its investors include pension plans, insurance companies, family offices and other institutional investors.

The fund has a direct Irish connection through the Ireland Strategic Investment Fund, which participated in its earlier fundraising. This gives Ireland a role in a European financing platform supporting technology and life sciences businesses across the region.

For the life sciences sector, the availability of growth debt could be particularly relevant as companies seek to fund clinical development, manufacturing preparation and international expansion while managing shareholder dilution.

For the sector, the lesson is clear. As European pharmaceutical and biotech companies require larger pools of capital to move programmes towards commercialisation, growth debt is becoming an increasingly relevant complement to traditional equity financing.

Source: Tech Funding News / Claret Capital / Claret Capital - Cinclus Pharma / Claret Capital - Inventiva