London Fund Manager Raises $660M to Back Europe's Next Big Tech Winners

Jan de Vries · 2026-09-07

When you're building a company, there's one thing every founder eventually needs: capital to grow. But not all capital is created equal. Some of it comes with strings attached, like giving up a chunk of your company. That's where growth debt comes in, and Claret Capital Partners just made a serious statement about its confidence in Europe's startup scene. The London-based firm has closed its fourth fund at a whopping $660 million (€575 million), blowing past its original target of $574 million (€500 million). That's a lot of money, and it's earmarked for one purpose: helping European tech, life sciences, and impact companies scale without giving away the farm. ### What This Fund Means for European Startups Here's the thing about growth debt versus equity. When you take equity funding, you're selling a piece of your company. Growth debt, on the other hand, is a loan that lets you keep control. For founders who want to grow without diluting their ownership, this is a big deal. The fund is split into two parts: about $505 million (€440 million) in direct commitments to Fund IV, plus roughly $155 million (€135 million) in an affiliated discretionary mandate. The investors include pension plans, insurance companies, family offices, and private wealth investors. That's a vote of confidence from the institutional world. David Bateman, Managing Partner at Claret, put it this way: "To have raised this amount not only validates our approach and track record but is also a massive vote of confidence for the European technology, life sciences and impact ecosystems." ### A Track Record That Speaks for Itself Claret isn't new to this game. Since 2013, the firm has invested over $1.7 billion (€1.5 billion) across more than 210 companies. The team has been active in tech financing for over 25 years, so they've seen multiple market cycles. What's interesting is how they deploy capital. Loans typically range from $2.3 million to $115 million (€2-100 million), and each deal is evaluated case-by-case. The money can be used for a variety of purposes: - Organic growth and acquisitions - Capital expenditure and working capital - Research and development - Geographic expansion - Marketing and distribution channel optimization - Bridge loans to extend cash runway to the next equity round - Recapitalization strategies ### Already Putting Money to Work What's even more impressive is that 32% of Fund IV has already been deployed. Claret has backed 27 companies so far, including some notable names like Billie (a B2B buy-now-pay-later platform), Cinclus Pharma (a clinical-stage pharmaceutical company), PRODA (commercial real estate software), Inventiva (clinical-stage biotech), and Surfe (a B2B sales-intelligence platform). That's a diverse portfolio, which makes sense given the firm's focus on tech, life sciences, and impact. The strategy seems to be working, too. Fund III, which closed in 2022 with $341 million (€297 million), has already delivered some impressive exits. ### A History of Successful Exits Speaking of exits, Claret's portfolio has seen some notable wins. Cytora was acquired by Applied Systems, Endomag by Hologic, Logpoint by Summa Equity, Lyst by ZOZO, and Tiqets by Expedia. There were also successful NASDAQ IPOs, including Abivax. That's a track record that gives investors confidence. Johan Kampe, another Managing Partner, noted that "as equity markets remain more selective and founders look for ways to grow without unnecessary dilution, we expect demand for flexible, non-dilutive capital to keep accelerating." ### The Bigger Picture for European Innovation This fund close comes at a time when Europe is trying to position itself as a serious contender in the global tech race. With the EU Inc proposal generating buzz about making it easier for startups to operate across borders, having more non-dilutive capital available is a positive sign. The firm is also expanding its footprint. Following this final close, Claret will add team members in Paris and Berlin, strengthening its presence across key innovation hubs. That local presence matters because building relationships with founders takes time and trust. For American observers watching the European market, this is a signal that the old continent is serious about nurturing its next generation of champions. And for European founders, it means there's another option beyond the venture capital path. Sometimes keeping control of your company is worth more than a bigger check.