AlbaCore Partners III Fund beat its initial €2 billion target and with leverage will have a total of €2.4 billion. Much of the capital came from re-ups, with 96 percent of investors in its second fund joining.
David Allen, managing partner and chief investment officer of AlbaCore, said: “I’m pleased with the level of commitments we’ve received for Fund III and the growth we’ve seen since our previous fund close. Despite a challenging environment, the number of investors that have continued their partnership with AlbaCore in Fund III is a testament to the priority we’ve placed on building long-term relationships.”
The fund will follow the same strategy as its predecessors, providing capital solutions for opportunistic credit and dislocation opportunities.
The firm has so far made about €2.6 billion of investments including recycling, saying it has been taking advantage of opportunities for low entry points and wide spreads. It added that 2022 has brought opportunities to use the full flexibility of its strategy.
Investments made this year include private senior secured financing, dislocated secondary positions and private LBO financing. The firm said it expects to continue recycling during its three-year investment period as market conditions evolve.
“While the credit market will likely be difficult to navigate in the near-term, we’re confident that our investment team’s skills and experience leave us particularly well positioned to deliver capital growth,” Allen added. “Our flexible mandate and proven track record across strategies allows us to be nimble and take advantage of the opportunities that fast-evolving markets provide.”