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CVC Credit Partners U.S. Direct Lending Fund II Secures $657MM in Total Commitments

April 22, 2020, 08:55 AM
Filed Under: Industry News

CVC Credit Partners announced that it has successfully raised $657 million for its second U.S. focused direct lending fund, CVC Credit Partners U.S. Direct Lending Fund II (“Fund II”). Fund II will follow the same strategy as its predecessor fund, investing in established U.S. middle market businesses as outlined further in the attached press release.

The successful fundraise exceeded the target amount by 31 percent or $157 million for CVC Credit Partners, which had a good track record and deployment of $1 billion of commitments in 70 investments for its U.S. direct lending strategy in Fund I and II.

Fund II surpassed its $500 million target and is also larger than its predecessor fund. Fund II enjoys a diverse investor base of institutional capital, including pension funds, insurance companies, asset managers and private wealth, spread across North America, Europe, Asia, and Australia.

CVC Credit’s US Direct Lending strategy seeks to provide investors access to a diversified and balanced portfolio of privately negotiated, senior-secured, floating rate loans to established U.S. middle market companies with EBITDA of $10 million to $40 million. To date, CVC Credit Partners has deployed over US$1 billion of commitments for its U.S. direct lending strategy, having made more than 70 investments across a broad range of sectors.

Tom Newberry, Global Head of Private Debt at CVC Credit Partners, said: “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. 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.”

Hamish Buckland, Chairman of CVC Credit Partners said, "This successful fund raising 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. 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.” 

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