NXT Capital has raised $312 million in equity for its fourth private debt fund. This amount, combined with an expected $600 million loan from Wells Fargo, will give the fund an investment capacity of about $900 million. NXT Capital Senior Loan Fund IV LP will focus on middle-market direct lending. The fund’s backers included public and private pension plans, insurance companies and foundations.
CHICAGO, Oct. 6, 2016 /PRNewswire/ — NXT Capital, LLC (www.nxtcapital.com) today announced the final closing on approximately $312 million in equity for NXT Capital Senior Loan Fund IV, L.P. When coupled with targeted leverage, Senior Loan Fund IV will have approximately $900 million in capital to invest.
The Fund, which has had three successive closings since its launch, invests in senior debt transactions directly originated and underwritten by NXT Capital’s Corporate Finance Group. The investment strategy is focused on senior secured loans, including straight senior, stretch senior, unitranche and selectively, second lien loans, made primarily to private equity-sponsored middle market companies across a wide range of industries in the United States. The addition of Senior Loan Fund IV increases third-party capital commitments to NXT Capital’s asset management business to over $5 billion.
The Fund received equity commitments primarily from U.S. and international institutional investors including leading public and private pension plans, insurance companies and foundations. In addition, Wells Fargo Bank N.A. is administrative agent for a $425 million syndicated credit facility that is expected to be increased to approximately $600 million in the fourth quarter and provide the balance of the Fund’s investment capacity.
“The interest we have seen in our asset management programs from new and existing investors further demonstrates the appeal of middle market loans to institutional investors,” said NXT Chairman and CEO Robert Radway. “NXT Capital Senior Loan Fund IV further strengthens our position as a leading provider of leveraged finance to the middle market and enhances our ability to meet the financing needs of our clients.”
“Senior Loan Fund IV offers institutional investors proprietary access to middle market loans through NXT’s strong origination capability and further solidifies NXT as a leading middle market asset manager,” said Kelli O’Connell, Head of NXT Capital’s Asset Management Group.
NXT Capital provides structured financing solutions to middle market companies and commercial real estate investors through our Corporate Finance and Real Estate Finance groups. NXT Capital’s Corporate Finance Group is a leading originator of cash flow-based financing solutions to middle market and healthcare companies, including senior, stretch senior, unitranche and second lien products. NXT Capital also provides investment advisory services through its wholly-owned subsidiary NXT Capital Investment Advisers, LLC, an investment adviser registered with the Securities and Exchange Commission. Flexible opportunities for investors include co-mingled funds, separate accounts and CLOs. See www.nxtcapital.com.