The Credit Crunch 09/07/23

Your weekly summary of Private Credit Fundraising and News

💰Fundraising news

Sixth Street, a San Francisco-based alternative asset manager, is reportedly approaching its $4.5 billion target for its second business development company. The fund primarily lends senior secured loans to US-based middle-market companies. It typically invests between $15 to $350 million to companies with EBITDA of $10 to $250 million. 99.2% of its loans are floating-rate loans. The business development company will be three times larger than its previous company. More here and here

Invesco, a US-based investment manager, launched the Invesco Commercial Real Estate Finance Trust. The fund will primarily focus on US-based “core-plus” credit and invest across the commercial real estate universe, including multifamily, industrial, single-family rentals, and self-storage. The fund implements a “property first” and “credit over yield” investment strategy by working with experienced sponsors seeking loans in markets in which the team has strong convictions. As of March 31, 2023, Invesco Real Estate had originated 232 loans globally totalling $17.3 billion in originations. More here

Benefit Street Partners, a New York-based alternative asset manager, announced the launch of its $1 billion real estate debt fund. The fund lend against all commercial property type and will lend across the United States using it’s national footprint. Benefit Street Partners is a wholly owned subsidiary of Franklin Templeton. More here

CVC Capital Partners, a Luxembourg-based investment manager, closed its third dedicated CLO equity vehicle with $800 million of commitments. Using an equity vehicle will allow CVC to reduce its time to issue new CLOs from six months to as little as three weeks (Here). To date the vehicle has funded 11 new transactions with an aggregate value of $4.8 billion (€4.6bn). This equity fund is intended to support over $10 billion of global CLO issuance for CVC Credit’s Performing Credit platform. More here

📚Essential Reads

Kroll’s European Mid-Market Debt Update - Spring 2023 (Link)

Houlihan Lokey’s Direct Lending Update (Link)