Veld Capital has closed a $401 million asset-backed continuation vehicle, with funds managed by Blue Owl Capital’s Alternative Credit strategy serving as lead investor following a secondary auction process.

The transaction was designed to acquire a portfolio of European asset-backed finance investments while giving existing investors the option to cash out, a press release from Veld said. The deal also provides fresh capital to support Veld’s expanding asset-based credit strategy across Europe, underscoring a growing appetite for private credit secondary transactions.

According to Veld, the continuation vehicle will acquire a diversified portfolio of cash-generating European asset-backed finance assets. The vehicle also includes additional commitments beyond the existing portfolio to fund a pipeline of new investment opportunities.

“We are pleased to launch this new investment vehicle which further underlines what has been a core focus for us since inception in 2009, consolidating our position at the leading edge of private asset-backed finance in Europe,” said Justin Sulger, founder and managing partner of Veld Capital.

“We are excited to support the continued success of Veld Capital in the European asset-backed finance market, and to build on Blue Owl’s long track record in credit secondaries,” added Josh Ufberg, senior managing director at Blue Owl.

Since its founding, Veld has deployed approximately $3.5 billion across performing asset-backed credit investments. The firm focuses on providing financing solutions to financial institutions tied primarily to consumer and small-business receivables through strategies including whole-loan acquisitions, risk-transfer transactions and asset-backed lending to private companies and asset owners.

Single-asset continuation vehicles are now the most prevalent transaction format, with 29% of deals now exceeding $1 billion, according to a recent report from Coller Capital.

"Continuation vehicles have become what Evercore’s Nigel Dawn describes as the ‘third door of liquidity’ for GPs, alongside M&A and IPOs. Rather than selling high-performing assets prematurely to meet fund timelines, GPs can transfer them into a new vehicle, retain control, and continue executing on their value-creation plans. Existing LPs, meanwhile, are given a meaningful choice: cash out at a market-tested valuation or roll their investment into the new vehicle and participate in any future upside," the report continued.

Blue Owl managed $315 billion in assets under management as of March 31, spanning its credit, real assets and GP strategic capital platforms.

Meanwhile, founded in 2009, Veld Capital is a European alternative investment manager with offices in London, Madrid and Luxembourg.

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