PDI Staff Writer
The vehicle is targeting C$200m and will invest primarily in industrials, energy and real estate.
The Helena-based limited partner currently has $268 million invested in energy-focused funds, but none are debt-focused.
The firm hired two people from EquiTrust Life Insurance to start the firm’s expansion into investment options curated for insurance companies.
Developing an expertise can help a firm limit competition for dealflow and land a place on the private equity community’s lender speed dial, according to Twin Brook co-managing partner Trevor Clark.
The BDC will lower its incentive fees and hurdle rate next year to stay “fee-friendly”.
The volume of add-on acquisitions has shot up recently, and firms are using this trend to add more leverage to their debt portfolios.
The firm is under agreement to acquire KCAP’s CLO credit branch by the end of this year so KCAP can refocus on mid-market lending.
The vehicle expects to list with a stock price between $20.25 and $21.25, with 7.5m shares of common stock being offered.
The BDCs voted to boost their 1:1 debt-to-equity ratio, authorising an additional 30% of capital to go toward specialty lending.
Symon Drake-Brockman explains that, in the late stages of the credit cycle, a successful strategy in a maturing market may depend on an ability to invest across markets.