NXT Capital said Nov. 6 that it its latest private debt fund closed on roughly $415 million in equity capital. The target of NXT Capital Senior Loan Fund V LP was $350 million. Fund V will invest in senior debt transactions directly originated and underwritten by NXT Capital’s corporate finance group.
NXT Capital Announces Final Equity Closing for its Latest Private Debt Fund Focused on Middle-Market Direct Lending
Chicago, Illinois, November 6, 2017 – NXT Capital, LLC (www.nxtcapital.com) today announced the final closing on approximately $415 million in equity capital, above its original $350 million target, for NXT Capital Senior Loan Fund V, LP (“Fund V”). When coupled with targeted leverage, Fund V will have approximately $1.2 billion of available capital to invest.
The Fund will invest 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 and unitranche loans made primarily to private equity sponsored middle-market companies across a wide range of industries in the United States.
The Fund received equity commitments from U.S. and foreign institutional investors, including leading public and private pension plans, insurance companies, foundations and asset managers. Wells Fargo Bank N.A. is the administrative agent for Fund V’s syndicated credit facility.
“Senior Loan Fund V is a significant milestone in the continued growth of NXT Capital’s asset management platform,” said Robert Radway, Chairman and CEO. “As the largest fund we’ve raised to date, it provides further evidence that investors recognize NXT’s leadership position in the middle market private debt space and the value of NXT’s long-standing relationships with private equity sponsors, robust origination network and disciplined underwriting and portfolio management processes.”
The addition of Fund V increases third-party capital commitments to NXT Capital’s asset management platform to over $5.7 billion.
NXT Capital provides structured financing solutions to middle market companies and commercial real estate investors through its Corporate Finance and Real Estate Finance groups. The Company has on- and off-balance sheet committed capital of over $10 billion. 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 and unitranche 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.