Adams Street raising debut private credit fund – exclusive

The New York-based debt arm of the alternative investment firm is aiming to collect between $500m and $700m for its first lending fund.  

Having recently launched a new private credit business, Adams Street Partners is fundraising for its first mid-market lending fund. The New York-based credit division is aiming to gather $500 million to $700 million for the vehicle, PDI understands.

The US alternative investment firm launched its private credit business in January by hiring two former Oaktree Capital Management executives. Bill Sacher (pictured), formerly the head of mezzanine strategies at Oaktree, and Shahab Rashid, who was a managing director and deal team head, are leading the new business at Adams Street.

Adams Street declined to comment on fundraising.

Although Sacher and Rashid focused on junior debt at Oaktree, the duo will invest across the capital structure for Adams Street. The business targets private equity-backed mid-market deals, including first-lien and second-lien loans, unitranche facilities mezzanine and preferred equity, according to the firm’s website.

Sacher left Oaktree in the summer of 2014. He is now a partner and head of the private credit group at Adams Street. Rashid is also a partner and co-founder on the same team. He left Oaktree in December.  Bill Casperson and Raj Makam are now the co-portfolio managers on the mezzanine strategy at Oaktree, which closed its fourth mezzanine fund on $842 million in January.

At Adams Street, Sacher and Rashid are so far, the only two employees in New York, though the firm plans to staff up the office with more senior, mid-level and junior private credit hires.

Adams Street is headquartered in Chicago and handles a variety of alternative strategies. The firm was launched in 1972 and built one of the industry’s first private equity fund of funds. In addition to the multi-manager business, the firm also handles direct private equity investments, co-investments and secondaries. Adams Street manages $27 billion across its investment strategies.

In addition to New York and Chicago, the firm’s other US offices are in Boston and Menlo Park, California. Its international outposts are in London, Beijing, Singapore and Tokyo.