BC Partners eyes $1 bln for sophomore credit fund

  • New fund to mostly focus on illiquid credit in current market
  • BC launched credit platform in 2017
  • Led by ex-Apollo exec Ted Goldthorpe

BC Partners launched its second credit fund targeting $1 billion, sources told Buyouts.

BC Partners Special Opportunities Fund II is the firm’s first broadly marketed credit pool, sources said. The firm raised Special Opportunities Fund I, which closed on around $200 million in 2017, mostly from firm employees, friends and family and some institutional investors, one of the sources said.

BC Partners credit platform is led by Ted Goldthorpe, who joined the firm in 2017 from Apollo Global Management. Fund II will be invested by BC’s credit team of 14 investment professionals, which is expected to grow to 16 by the summer, sources said.

BC’s Special Opportunities Fund invests in both liquid and illiquid credit. In the current environment, the fund’s primary focus will be on illiquid investments, sourced by the team from middle-market, family-owned businesses, one the sources said.

If the market sours, the fund can also look at distressed debt, the source said.

BC’s credit platform also has direct lending capabilities. The firm this week closed a deal to take over external management of business development company KCAP Financial, which changed its name to Portman Ridge Finance Corp as part of the transaction.

Prior to Apollo, Goldthorpe worked at Goldman Sachs. Several other Goldman alumni joined him at BC Partners, including Henry Wang, who joined in 2017 from Stonerise Capital Partners, and Matthias Ederer, who joined in 2017 from Wingspan Investment Management.

BC Partners is in the market at the same time that Vista Equity Partners is seeking $2 billion for its third credit pool. It’s not clear if Vista has launched fundraising for its new credit fund yet. Vista hired David Flannery last year from GSO Capital Partners to lead its credit platform.

Action Item: Check out BC Partners Form ADV here: https://bit.ly/2FJuEZw.

Action Item: Ted Goldthorpe can be reached at 212 891 2880.