Oaktree are excited about Rescue Financing
Oaktree are excited about Rescue Financing
Fundraisings from Pemberton, Alteria and Sound Asset Management.
👋 Hey, Nick here. A special welcome to the 18 new subscribers from Van Spina’s Newsletter. If you’re new, this is the 55th edition of my weekly newsletter. Each week I write about private credit insights and fundraising announcements. You can read my previous articles here and subscribe here. Scroll to the bottom, if you’re here for the fundraising news.
📚 Reads of the week
The Definitive History of Private Credit. A must-read for anyone in Private Credit. Make sure to subscribe to Van Spina’s substack too. (Link)
Opportunistic Credit: Rescue Me. Oaktree believes that rescue financings are offering some of the best risk/reward profiles they’ve seen in their careers. (Link)
Carvana: The “Perfect” Rescue Finance Case Study. Looking for evidence for Oaktree’s argument? Pari Passu wrote an excellent deep dive into Carvana’s debt restructuring. (Link)
Carvana’s share price is up 163% since it negotiated this debt restructure (See below).
📊 Not all BDCs are valued equally..
Bloomberg wrote its monthly hit piece on private credit (Link). While I’d take most of the article with a grain of salt, it was interesting to see the divergence in BDC performance. Hercules and Main Street are trading at nearly 40% above NAV. Prospect Capital is trading 60% below NAV.
💰Fundraising news
Pemberton, a London-based credit manager, closed its $2.5 billion Strategic Credit Fund III. The opportunity fund lends senior secured loans to European mid-market companies with EBITDA between €15 million and €100 million. It can also provide subordinated debt to performing companies with non-cyclical cash flows and high equity buffers. (Link)
Alteria Capital, an India-based venture debt lender, closed its $195 million fund III. Alteria lends up to $24 million to venture-backed companies in India and South East Asia. The fund has already deployed 50% of its capital.
Sound Asset Management, a Lithuania-based asset manager, launched its first private debt fund. The ~$90 million fund will lend to small and medium-sized companies in Lithuania, Latvia, and Estonia. It expects to lend between €300k and €7 million per company. The fund is the first institutional private credit fund targeting SMEs in the Baltics.