Asset manager Intermediate Capital Group (ICG) saw its shares soar on Tuesday after it raised €5.2bn (£4.7bn) – the largest fund of its kind raised in Europe this year and the company's biggest ever.
The €27.2bn group, which last year sold its chunk of steak restaurant chain Gaucho, was one of the biggest risers on the FTSE 250 after announcing the mammoth fundraising.
It is Europe's largest debt fund this year, according to data provider Prequin, and overshadows ICG's two next largest funds which both secured €3bn in 2015.
Shares closed up 8.2pc at £10.06.
The firm entered the direct lending market in 2011 to fill a gap left by banks after the financial crisis, and has since seen demand grow rapidly.
"We’ve clearly seen a period of rapid expansion in direct lending over the last two years as the shift away from traditional bank lending continues," said Max Mitchell, ICG's head of senior direct lending in Europe.
The €5.2bn raised, which will be used to invest in businesses "led by strong management teams" mainly in the UK and Europe, coincided with the firm's six month results to September 30.
Helping to offset a 24pc slide in the company's overall group profit for the six months to September 30 compared to last year, the firm said it saw profits across its fund management company soar 30pc during the period.