Arini Capital Management, the hedge fund firm run by Hamza Lemssouguer, has secured a $200m anchor commitment from British Columbia Investment Management Corp (BCI) for its new Europe-focused private credit fund, launched in partnership with Lazard Inc, according to a report by Bloomberg.

The investment marks a significant vote of confidence in Arini’s direct lending strategy targeting mid-sized companies across Europe.

In addition to the anchor commitment, BCI plans to deploy a further $400m in co-investments alongside the fund, which will focus on providing junior and senior loans with bespoke financing structures, as traditional bank lending remains constrained.

The Arini Direct Lending Fund, which leverages Lazard’s corporate advisory reach for deal sourcing and Arini’s credit underwriting expertise, now boasts $1bn in investable capital at first close, including leverage, according to sources familiar with the matter.

BCI, which manages over C$250 billion ($183 billion) in assets, has been increasing its exposure to private debt globally. In the fiscal year ending March 2024, its private credit portfolio delivered a 13.3% return, with over $2 billion deployed, particularly targeting middle-market opportunities and expansion into Asia.