Balbec secures $1bn for NPL strategy

The fund manager is drawing close to its fund target and expects to hold a formal fourth close in early December.

Specialist NPL investor Balbec Capital is thought to have raised more than $1 billion for its latest fund, according to sources close to the firm.

Balbec is believed to have informed investors that it has now received commitments of $1.03 billion for its InSolve Global Credit Fund V, bringing it close to its $1.25 billion target. It expects to hold a fourth close in early December with a series of subsequent closures for the remainder of its fundraising period.

An investor communication seen by Private Debt Investor said the vehicle has already deployed more than $300 million to transactions and Balbec reports is has a strong pipeline of deals.

The fund will invest in the same strategy as its predecessor funds, acquiring consumer mortgages and loans that are subject to Chapter 13 bankruptcy or equivalent.

The source said the firm’s previous fund is now fully committed with extensive recycling and had achieved a mid-teens return between inception in March 2019 and the end of 2020.

Scottsdale-based Balbec held a final close of its fourth fund on $1.2 billion in 2020, above its $1 billion initial target.