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NXT Capital Launches $800MM Leveraged Loan Fund

January 28, 2015, 08:08 AM
Filed Under: Industry News

NXT Capital, LLC announced the closing of NXT Capital Senior Loan Fund III, LP, a leveraged loan fund that will invest in first and second lien loan transactions originated and underwritten by NXT Capital’s Corporate Finance Group. Transactions include term, delayed draw term, revolving credit, stretch senior, unitranche, first lien term behind revolver, split lien and last-out term loans made primarily to private equity-sponsored middle market companies across a wide range of industries.

The addition of Senior Loan Fund III increases the third-party capital committed to the Corporate Finance Group’s asset management business to over $4 billion. The Fund received $291 million in equity commitments primarily from seven institutional investors, comprised of leading pension plans, insurance companies and foundations. In addition, Wells Fargo Bank N.A. led a $420 million syndicated credit facility that provides the balance of the Fund’s investment capacity. The credit facility is expected to increase in the first quarter of 2015 to bring the total Fund investment capacity to $800 million.

Senior Loan Fund III follows NXT Capital Senior Loan Fund II, LP, a similar $783 million fund that closed in July, 2013 and validated NXT’s ability to execute on this investment strategy.

“The addition of NXT Capital Senior Loan Fund III strengthens NXT Capital’s position as a leading provider of leveraged finance to the middle market,” said NXT Chairman and CEO Robert Radway. “Strong interest in Senior Loan Fund III also further demonstrates the appeal of middle market loans to institutional investors who are seeking to enhance returns without materially increasing interest rate or credit risk.”

“Senior Loan Fund III extends NXT’s ability to meet customers’ financing needs,” said John Finnerty, Head of NXT Capital’s Corporate Finance Group. “It also solidifies NXT’s position as a leading middle market asset manager.”

NXT Capital provides structured financing solutions to middle-market companies and real estate investors through its Corporate Finance, Equipment Finance and Real Estate Finance groups. Based in Chicago with offices in Atlanta, Charlotte, Dallas, Los Angeles, Nashville, New York, Phoenix, San Francisco and Stamford, NXT Capital targets senior financing opportunities of up to $150 million.

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