Alternative asset investor Intermediate Capital Group (ICG) has raised €5.2bn (£4.7bn) for its Senior Debt Partners strategy.

The oversubscribed fund was raised in five months and includes €4.2bn of new commitments. ICG said it received particularly high levels of interest from UK and European investment funds.

The third vintage fund for ICG follows its €3bn predecessor which was raised in 2015. It is now 95 per cent invested across around 40 deals.

The new fund will largely follow the same strategy, investing in directly originated senior secured loans to European mid-market corporate borrowers.

ICG head of senior direct lending Max Mitchell said: “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. However, at the same time, we have seen investors become more selective and sophisticated, with a flight to quality managers and far greater emphasis on performance and experience in deploying capital.

“An important part of our approach is in ensuring we size the fund to meet the investment opportunities available. This same rigour has supported our ability to deploy the previous funds despite some challenging market dynamics.”

Overall, ICG enjoyed record fundraising of €5.7bn in the six months to 30 September, which was driven by the €4.2bn raised for the senior debt fund. A number of ICG’s larger strategies are expected to begin raising successor funds in the next 12 months.

According to the firm’s H1 results, ICG’s total assets under management sat at €27.2bn, up 14 per cent on H2 results for 2016/17.

Fund management profits were up 30 per cent on the last half to £44.3m with third party fee income increasing by 24 per cent. Investment company profits, however, dropped by 44 per cent to £51.2m due to lower investment income.