NXT Capital has closed NXT Capital Senior Loan Fund II, LP (Fund II), a $783 million leveraged loan fund that will invest in senior debt transactions originated and underwritten by NXT Capital’s Corporate Finance Group. Loan types include senior secured, stretch senior, unitranche, 2nd lien, term over revolver and last-out term loans made primarily to private equity-sponsored middle market companies across a range of industries.
Fund II represents a substantial expansion of the Corporate Finance Group’s existing $1.5 billion asset management platform and further extends the company’s ability to serve its middle market client base. Fund II received equity commitments from nine institutional investors, including pension plans, insurance companies and foundations. In addition, Wells Fargo Bank has provided a $500 million term loan commitment to Fund II.
“The successful close of this fund represents a strong endorsement of NXT Capital’s expertise in middle market leveraged lending and our track record as an asset manager,” said Robert Radway, NXT’s Chairman and CEO. “We appreciate investors’ vote of confidence in our team and the attractiveness of this investment opportunity.”
NXT Capital provides structured financing to middle-market and growth companies through its Corporate Finance, Equipment Finance, Real Estate Finance and Venture Finance groups, originating transactions directly on a national basis. NXT Capital is led by former principals of Merrill Lynch Capital and was formed in 2010 by Stone Point Capital and the founding management team. The firm is based in Chicago with offices in New York, Atlanta, Boston, Charlotte, Dallas, Phoenix, San Francisco and Silicon Valley (www.nxtcapital.com).
“The addition of Fund II to our existing asset management platform further solidifies NXT’s position as a leader in the middle market space,” said John Finnerty, Head of NXT Capital’s Corporate Finance Group.
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-31-13
