CVC Credit Closes New Fund

CVC Credit Partners has closed CVC Credit Partners U.S. Direct Lending Fund II LP with $657 million of capital, sharply higher than its $500 million target.

Limited partners in Fund II include pension funds, insurance companies, asset managers and private wealth managers located in North America, Europe, Asia, and Australia.

“We are very pleased to have been able to close Fund II in such a challenging environment, and are extremely grateful to our supportive investor base which has allowed us to exceed our fund target,” said Tom Newberry, global head of private debt at CVC Credit. “Given the current market volatility, we are fortunate to have a significant amount of dry powder to invest. We continue to review attractive investment opportunities and expect to be able to construct a portfolio of high-quality assets for Fund II.”

Like its earlier fund, Fund II invests in senior-secured, floating-rate loans to US-based middle-market companies that have EBITDAs from $10 million to $40 million. To date, CVC Credit has made over $1 billion of commitments through its U.S. direct lending strategy and has closed more than 70 investments across a range of sectors.

“This successful fundraising fits perfectly with our strategy of making sure we have significant capital available across the CVC Credit platform to deploy when the credit cycle turns,” said Hamish Buckland, the chairman of CVC Credit. “The market has clearly tightened, which bodes well for this new fund. It is also another key step in the continuing development of our private debt franchise.” Mr. Buckland joined CVC Credit in 2017. Prior to joining the firm, he served on the investment advisory committee at Triton Partners and spent 25 years at JP Morgan, where his most recent role was vice-chair of the firm’s investment banking business.

CVC was founded in 1981 as the European arm of Citicorp Venture Capital and spun out as a separate firm in 1993. Today it has more than $82 billion of assets under management. The firm’s credit strategy – CVC Credit – has more than $25 billion of assets under management across performing credit, special situations and private debt.

Private Equity Professional | April 22, 2020

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