Andrew Hedlund
The firm has surpassed the $500m raised for a previous senior debt vehicle that closed in 2016.
The firm is the latest in a spate of real estate managers to venture into the debt world.
Private equity firms face some complex legal and compliance issues if they want to expand into credit funds, write Jason Brown, Jessica O’Mary and Catherine Skulan of Ropes & Gray
CLO issuance could reach $100bn in 2018 despite potentially weakening credit quality, according to Moody’s.
The distressed debt behemoth’s previous vehicle reported a net IRR of 29.4% and 1.4x return multiple.
The world’s largest asset manager is raising an inaugural seven-year fund, which has a 10 percent carried interest over a 6 percent hurdle, after launching its mid-market lending business a dozen years ago.
The two investment professionals, joining from White Oak Global Advisors, will also work throughout the Pacific Northwest.
The new entrant, which currently embraces traditional investment strategies, would rely on NewStar to manage the vehicle.
The private credit behemoth launched a private fund for the strategy to address a growing market gap and increase its hold size.
The fund, which will focus on North America, will also make unitranche loans.