CVC Credit Partners has closed its second global special situations fund at $1.42 billion, beating its $1 billion target. The limited partners of Global Special Situations Fund II included pension funds, insurance companies, fund of funds, foundations, endowments and family offices across the Americas, Europe, Middle East and Asia. The fund will invest in stressed and distressed debt situations in Europe and North America.
CVC Credit Partners is pleased to announce the final close of Global Special Situations Fund II (the “Fund” or “GSS II”) with total capital commitments of $1.42 billion1 raised within 8 months, surpassing its original target of $1.0 billion. The Fund represents the continuation of the successful track record of its predecessor fund, GSS I. In aggregate with other investment vehicles across the platform, CVC Credit Partners now manages over $4.6 billion dedicated to stressed and distressed credit investments.
GSS II follows on from the success of the first fund, which raised $726 million in June 2016. Investors in GSS II comprise of a mix of returning and new investors representing a broad global base of private capital sources including pension funds, insurance companies, fund of funds, foundations, endowments and family offices across the Americas, Europe, Middle East and Asia.
The Fund will invest in stressed and distressed debt situations across Europe and North America, primarily through the purchase of senior secured debt in issuers that will typically be undervalued with respect to enterprise value or cash flow valuation. Since 2014, the Investment Team has invested in over 110 distressed issuers, and since January, GSS II has already made 9 investments and is over 10% invested.
Mark DeNatale, Global Head of Special Situations at CVC Credit Partners commented on the outlook for the market: “Given recent volatility in credit markets, and with banks continuing to reduce risk exposures, we see significant value in stressed and distressed credit opportunities in both the U.S. and Europe. With Global Special Situations Fund II, the team can continue their proven investment strategy that aims to deliver attractive returns for our investors both in the current market environment, as well as in a potential downturn.”
Hamish Buckland, Chairman of CVC Credit Partners said, “CVC Credit Partners is well positioned to find the best investment opportunities using the CVC network to gain insight into businesses and truly understand sector and macro dynamics. Investors understand the importance of local knowledge and insight, and the successful fundraising demonstrates a high degree of confidence in our investment capabilities.”
About CVC Credit Partners
CVC Credit Partners is the credit management business of CVC. CVC Credit Partners is a global credit asset manager with offices in the U.S. and Europe, more than 60 investment professionals and US $22.7 billion assets under management, as at 31 March 2019.
CVC Credit Partners seeks to generate for its investors positive absolute returns and attractive risk-adjusted returns on capital throughout the credit cycle. CVC Credit Partners has built a diverse platform which creates significant synergies across its three investment strategies: Performing Credit, Credit Opportunities & Special Situations and Private Debt.