The investment banking arm of Barclays Bank, Barclays Capital has raised $1 billion (€648 million) for its debut junior credit fund – a “substantial portion” of which is an anchor commitment from its parent company, a spokesperson has told PEO.
The Barclays Structured Principal Investing Fund was raised by the affiliated principal credit investment unit of Barclays Capital (BarCap), Barclays Structured Principal Investing.
The unit may seek an additional $500 million in commitments which would bring the fund size to its hard cap of $1.5 billion.
“The record levels of private equity fundraising, coupled with continued volatility in the financing markets, will keep demand for private debt solutions robust,” Structured Principal Investing head Brent Humphries said in a statement.
The credit-oriented vehicle will pursue investments between $20 million and $150 million in size in the forms of uni-tranche, second lien and mezzanine debt as well as holding notes and structured preferred stock. The fund may selectively pursue larger opportunities or partner with other investors to conduct larger transactions.
BarCap will also make equity co-investments alongside financial sponsors, typically in conjunction with credit-oriented investments.
The fund, which will focus on the North American primary issue market, will invest in deals done by Barclays Capital US Leveraged Finance and is also able to invest in deals led by third parties.
BarCap, which has offices in 26 countries, has focussed on building its leveraged finance platform over the last two and a half years beginning with the hire of co-heads of US leveraged finance Rick Van Zijl and Joe McGrath from Goldman Sachs in early 2006.