Kennedy Lewis, the US private credit manager, and Bank of Ireland have formed a €2 billion partnership to finance European mid-market buyouts. The partnership will focus on originating and jointly deploying bank-led financing solutions for European mid-market private equity sponsors across bilateral, club, and syndicated loan structures.

Alternative Credit Investor reported that Kennedy Lewis has committed €2 billion to support the partnership's activity over the next three years, complementing Bank of Ireland's existing acquisition finance business.

Michael Lauhoff, head of specialist banking at Bank of Ireland, said: "This partnership enhances our ability to provide attractive alternative financing solutions to sponsors and enables both institutions to support a significantly enhanced product proposition. Kennedy Lewis is an ideal partner, sharing our values and bringing deep expertise in mid-market transactions from the US. We see this as the beginning of a long and successful relationship."

The partnership will leverage Bank of Ireland's European leveraged finance platform alongside Kennedy Lewis's flexible capital base. The US-based multi-strategy private credit manager oversees more than $32 billion (£23.9 billion; €29.3 billion) in assets under management.

Doug Logigan, president and co-managing partner at Kennedy Lewis, said: "This partnership will provide Bank of Ireland clients with an expanded one-stop shop for debt solutions that offer flexibility, certainty and speed. Kennedy Lewis investors will gain exclusive access to differentiated deal flow from a partner that is deeply aligned with our investment philosophy and culture of risk management."

Bank of Ireland was advised by PwC Corporate Finance and Linklaters, whilst Kennedy Lewis was advised by Akin Gump and Walkers Ireland.

The partnership positions both institutions to expand their presence in European mid-market lending amid growing demand for alternative financing solutions.

Read how Kennedy Lewis and Bank of Ireland's strategic partnership transforms European mid-market acquisition finance.