(Bloomberg) -- Intermediate Capital Group Plc has raised €15.2 billion ($16.8 billion) for a European direct-lending fund, the largest of its kind ever to close in the region.

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The latest fundraising, outlined in a statement seen by Bloomberg News, has smashed the London-based alternative investment firm’s previous round of €8.1 billion, as investors increasingly flock to established players in the private credit industry. The fund is led by Peter Lockhead and Mathieu Vigier, the co-heads of ICG’s senior debt partners strategy.

ICG’s direct-lending business is on its fifth vintage, and seeks to provide loans to private-equity backed companies in Europe. The latest fund has already deployed about 40% of its capital, having lent to firms including European classifieds company Adevinta ASA and Italian textiles manufacturer Gruppo Florence.

It’s the latest sign of growth in the $1.7 trillion private credit sector, which is expanding as a prolonged period of high interest rates has pushed up investors’ expectations on returns. The clamor is fueling rapid growth at some of the well-known managers with lengthy track records in the industry.

Founded in 1989, ICG now oversees about $101 billion of assets, according to its website. Its new fund follows a string of huge money-raising efforts by peers this year, as direct lenders seek to grab bigger buyout deals.

In Europe, Arcmont Asset Management Ltd. raised €10 billion for its latest direct-lending fund earlier this year. Ares Management Corp. is looking to close Ares Capital Europe VI with about €15 billion of investor commitments later this year, according to a recent earnings call.

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