Buyouts Snapshot: Twin Brook Capital eyes $500 mln lending fund

Twin Brook Capital Partners is seeking $500 million for a middle-market direct lending fund as it kicks off as a new unit of Angelo Gordon & Co headed by two former executives from Madison Capital Funding, according to sources familiar with the firm.

Chris Williams and Trevor Clark are heading up the effort as managing directors at Angelo Gordon, the New York-based alternative investment advisor, according to a source. Angelo Gordon hired Williams and Clark last year; the two left Madison Capital in 2013.

A spokesman for Angelo Gordon declined to comment.

Both Williams and Clark are also co-founders of Madison Capital Funding’s direct lending business. At Angelo Gordon, they’re taking aim at companies generating EBITDA of $3 million and $50 million.

Michael Gordon, co-founder and chief investment officer of Angelo Gordon, said the direct lending business was a way to address an opportunity to “help close the funding gap for middle market companies,” according to a prepared statement last year.

The launch of Twin Brook Capital Partners by Angelo Gordon comes as other alternative investing firms also hit the fundraising trail to raise direct lending vehicles.

Kohlberg Kravis Roberts & Co is currently fundraising for its KKR Direct Lending II fund.

Another $500 million fund in the market comes from Credit Suisse Park View BDC Inc, according to a filing cited by Reuters. The fund stems from a speciality finance company formed by Credit Suisse’s asset management unit.

Last April, Providence Debt Fund III LP, a fund from Benefit Street Partners, raised $1.75 billion, ahead of its $1 billion target. The credit arm of Providence Equity Partners drew strong interest due to demand from LPs seeking yield in a low interest rate environment.

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