NXT Capital has held a final closing of NXT Capital Senior Loan Fund IV, LP with approximately $312 million of equity commitments. The new fund received commitments primarily from US and international institutional investors including public and private pension plans, insurance companies and foundations.
When coupled with targeted leverage, the new fund will have more than $900 million of capital to invest. Wells Fargo is the 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 Fund IV’s investment capacity.
Fund IV, 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.
With this closing, NXT Capital now has third-party capital commitments of over $5 billion. “The interest we have seen 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.”
“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 of up to $150 million with a hold size up to $50 million to middle-market companies through its corporate finance and real estate finance groups. The firm is based in Chicago with offices in Atlanta, Dallas, Los Angeles, Nashville, New York, Phoenix, San Francisco (www.nxtcapital.com).
© 2016 Private Equity Professional • 10-6-16