Park Square Capital has held a final close on a €1.2 billion debt fund, beating its target, despite signs that appetite for private debt fundraising is finally slowing after years of sustained growth.

The credit specialist's third debt fund will invest in subordinated debt attached to private equity-backed deals across Europe and the US, a statement said. The fund closed above its €1 billion target and is significantly larger than its predecessor PSCP II, which raised €850 million.