Tennenbaum Closes DIP Fund with $454 Million

Tennenbaum Capital Partners has held a $454 million final close on its first fund focused on debtor-in-possession (DIP) financing.


Tennenbaum Capital Partners, LLC (“TCP”), a leading private investment firm with industry-leading experience in distressed investing, today announced the third and final closing of Tennenbaum DIP Opportunity Fund, LLC (the “Fund”), a $454 million fund focused on debtor-in-possession (“DIP”) financing.

“The Fund will assist debtors with flexible loans that will provide sufficient time to restructure during the reorganization process,” said Howard Levkowitz, Managing Partner of TCP. “We’re  positioned for this unique opportunity.”

The Fund will lead, structure, agent and participate in DIPs and DIP refinancings, using TCP’s unique experience with distressed investing to guide debtors through their restructurings. The Fund targets DIP loans of a minimum $10 million.  

“This Fund builds on TCP’s history of providing financing in complicated situations or when financing is in short supply to help distressed companies emerge from difficult circumstances and achieve future success,” said David Hollander, a Partner with TCP.

Debtor-in-possession financing, or DIP financing, is a special form of financing provided to assist companies under Chapter 11 bankruptcy protection.  DIP financing is generally senior to other debt, equity, and any other securities issued by a company.  DIP loans are generally put into place at the beginning of bankruptcy cases to provide immediate cash as well as ongoing working capital to allow a company to reorganize. DIP financing assists companies by restoring vendor and customer confidence in the company’s ability to maintain its liquidity.

TCP has extensive experience working with companies in energy and power, manufacturing, media and business services, retail and consumer services, real estate, technology, telecom, and transportation, but will consider loans in all industries.

Greenhill & Co., LLC served as the exclusive global placement agent for the Fund.

About Tennenbaum Capital Partners, LLC

Tennenbaum Capital Partners(TM) is a Santa Monica, California-based private investment firm. The firm’s investment strategy is grounded in a long-term, value approach, and it assists – both financially and operationally – transitional middle market companies in such industries as technology, healthcare, energy, aerospace, business services, retail and general manufacturing. TCP’s core strengths include in-depth knowledge of equity and debt financing vehicles in the public and private markets, as well as a thorough understanding of special situations. These situations may include legal, operational or financial challenges; turnarounds, restructurings and bankruptcies; corporate divestitures and buyouts; and complex ownership changes. For more, see www.tennenbaumcapital.com.