Portfolio Advisors racks up over $1.1bn for new credit fund

Portfolio Advisors has raised over $1.1 billion for its third direct credit opportunities fund, beating its $1 billion target.

Portfolio Advisors has raised over $1.1 billion for its third direct credit opportunities fund, beating its $1 billion target. PADCOF III’s limited partners included pension funds, insurance companies, foundations, endowments, family offices and high-net worth individuals both in the U.S. and abroad. The fund will focus on providing junior debt financing to U.S. middle- market companies undergoing buyouts, recapitalizations or growth equity transactions.

PRESS RELEASE

Darien, Connecticut – May 6, 2021 – Private markets specialist Portfolio Advisors, LLC (“PA”) is pleased to announce the successful closing of PA Direct Credit Opportunities Fund III (“PADCOF III”). The fund held a final closing on March 31, 2021, with total commitments of over $1.1 billion, exceeding its $1 billion target. PADCOF III received support from existing and new investors, which included pension funds, insurance companies, foundations, endowments, family offices and high net worth individuals both in the U.S. and abroad. To date, PADCOF III has invested approximately 20% of its capital in six companies.

Consistent with Portfolio Advisors’ direct credit investment team’s prior experience, PADCOF III partners with top-tier private equity sponsors to provide junior debt financing to U.S. middle market companies undergoing buyouts, recapitalizations or growth equity transactions. These investments are typically in the form of second lien loans, senior subordinated notes or preferred equity.

Led by Chuck Harper and Igor DaCosta, Portfolio Advisors’ direct junior credit investment team is the former DLJ Investment Partners team, which Portfolio Advisors acquired from Credit Suisse in December 2013. The team’s senior investment professionals, who have worked together for 21 years, have a lengthy and successful track record in the direct debt space, having invested nearly $3 billion in 74 middle market companies.

“We are extremely grateful for the show of support from both existing and new investors, and are appreciative of their confidence in the team’s ability to deliver consistent, attractive, risk adjusted returns,” said Harper.

“Our successful fundraising is a testament to the benefits of having a long-term partnership approach, and we are grateful to the many equity sponsors who have put their trust in us as a solution provider, especially in these unpredictable and unprecedented times,” said DaCosta.

PADCOF III is the fifth fund managed by the direct junior credit investment team and the second fund while under the Portfolio Advisors umbrella. Portfolio Advisors’ direct investment platform includes its junior and senior credit investment teams and its equity co-investment group. Combined, Portfolio Advisors has invested more than $4 billion in direct investment opportunities.

About Portfolio Advisors
Portfolio Advisors, LLC is a U.S. middle market private asset management specialist that builds value for its clients and partners through multi-strategy investment programs in private equity, private credit, and private real estate. The firm’s global investment and client services capabilities are supported by offices in North America, Europe, and Asia.