Claret Capital launches €575M fund to provide up to €50M in financing for European startups

London-based Claret Capital Partners has closed its fourth growth debt fund at €575 million, exceeding its original target and reinforcing its position as one of Europe's largest independent growth debt managers. The new fund is designed to support technology and life sciences companies while helping founders scale without unnecessary equity dilution.

The fund consists of €440 million in direct commitments and €135 million in affiliated discretionary mandates. With this latest raise, Claret expands a financing model that prioritises long-term relationships over one-off lending.

More than 90% of the capital comes from institutional investors, including the European Investment Fund (EIF), the British Business Bank, Germany's KfW, Ireland's ISIF, European banks, and pension funds across Europe and North America.

Why growth debt is gaining momentum

Unlike traditional venture debt, Claret's model allows companies to increase their borrowing capacity as they grow. Rather than returning to the market for a new equity round at every stage, businesses can access additional financing while preserving ownership.

One of the strongest examples is Open Cosmos, which received an initial €3.2 million loan before expanding its financing to more than €50 million as annual revenue grew from roughly €2 million to over €50 million.

Munich-based travel platform HOLIDU followed a similar path, growing from an initial €4-5 million loan to more than €100 million in financing. Claret continues extending capital even while companies repay existing loans, creating a continuous funding pathway for scaling businesses.

Deeptech and life sciences take centre stage

The new fund will place greater emphasis on deeptech, semiconductors, and dual-use technologies linked to defence, alongside its existing focus on technology, life sciences, and impact-driven companies. The firm expects these sectors to attract increasing demand as venture capital continues flowing into advanced technologies such as AI.

According to Claret, investment decisions are built around three core principles: proven market validation, founding teams with demonstrated execution capability, and capital structures designed for long-term growth rather than early exits. Because the firm provides debt instead of taking equity, it remains largely neutral about when portfolio companies choose to exit.