CVC Credit Partners closed its second US-focused direct lending fund on $657 million. Fund II beat its $500 million target for investments in privately negotiated, senior-secured, floating rate loans to US middle-market companies with EBITDA of $10 million and $40 million. CVC deployed more than $1 billion for its US direct lending strategy over more than 70 investments across a broad range of sectors.
CVC Credit Partners is pleased to announce that it has successfully raised US$657 million for its second U.S. focused direct lending fund, CVC Credit Partners U.S. Direct Lending Fund II (“Fund II”). Fund II will follow the same strategy as its predecessor fund, investing in established U.S. middle market businesses.
Fund II surpassed its US$500 million target and is also larger than its predecessor fund. Fund II enjoys a diverse investor base of institutional capital, including pension funds, insurance companies, asset managers and private wealth, spread across North America, Europe, Asia, and Australia.
CVC Credit’s US Direct Lending strategy seeks to provide investors access to a diversified and balanced portfolio of privately negotiated, senior-secured, floating rate loans to established U.S. middle market companies with EBITDA of $10 million to $40 million. To date, CVC Credit Partners has deployed over US$1 billion of commitments for its U.S. direct lending strategy, having made more than 70 investments across a broad range of sectors.
Tom Newberry, Global Head of Private Debt at CVC Credit Partners, said: “We are very pleased to have been able to close Fund II in such a challenging environment, and are extremely grateful to our supportive investor base which has allowed us to exceed our fund target. Given the current market volatility, we are fortunate to have a significant amount of dry powder to invest. We continue to review attractive investment opportunities and expect to be able to construct a portfolio of high quality assets for Fund II.”
Hamish Buckland, Chairman of CVC Credit Partners said, “This successful fund raising fits perfectly with our strategy of making sure we have significant capital available across the CVC Credit platform to deploy when the credit cycle turns. The market has clearly tightened, which bodes well for this new fund. It is also another key step in the continuing development of our Private Debt franchise.”
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, 60 investment professionals and US$26 billion assets under management, as at 31 December 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. For further information about CVC Credit Partners please visit: www.cvc.com/credit.
About CVC Credit Partners Direct Lending
CVC Credit Partners Private Debt strategy focuses on lending to established mid-market companies in the U.S. and Europe. The strategy focusses primarily on senior secured floating rate loans to European and U.S. businesses loans, which are directly sourced and privately negotiated via the long-term relationships of the investment team, based in London and New York. The middle-market companies backed generally have EBITDA of between €/$10 million to €/$75 million, with the Private Debt’s strategy target loan size being between €/$30 million and €/$100 million.