Balbec garners $100m for global insolvency credit fund – exclusive

The just-launched fund is targeting $1bn

Balbec Capital has garnered a $100 million re-up commitment from an Asian institutional investor for its fourth global insolvency credit fund, Private Debt Investor has learned.

The Asian capital commitment went to the Scottsdale-headquartered alternative credit investment manager’s InSolve Global Credit Fund IV. The vehicle was officially launched with a target of $1 billion, per a Securities and Exchange filing on 1 March 2019.

It is understood the fund is structured as a closed-ended vehicle with a two-year investment period and will target an IRR of over 10 percent.

Its predecessor fund, InSolve Global Credit Fund III, held a final close on $727 million as of April 2018, the firm disclosed. Fund III has invested mainly in the US and continental Europe and has a two-year investment period, from April 2018 to April 2020.

Balbec’s second global private credit fund held a final close on $629 million in July 2015. Its investment strategy included investing in insolvency assets secured by hard asset collateral, including the US first-lien mortgages.

The firm started fundraising for its global private credit fund in November 2011 with a target of $150 million. The first fund, InSolve Global Credit Fund I, held a final close on $143 million in June 2012. It deployed the capital across seven countries.

Among its LP roster, The Eisner Foundation, the philanthropic foundation set up by former Walt Disney chairman Michael Eisner, made capital commitments to both Fund I and Fund II series.

Requests for comments on the reporting to the firm were not returned.

Balbec Capital is a private credit investment firm with a focus on insolvency, bankruptcy, and other restructuring processes. The firm has invested over $1.5 billion across 18 countries for the insolvency strategy.