Bayside Capital has exceeded its own expectations after closing a fourth incarnation of its loan opportunity fund with total committed capital of $1.1 billion, which will have an investment focus on the U.S. rather than Europe like its predecessor.
The distressed investing arm of HIG Capital announced Wednesday (6 July) it surpassed its $1 billion goal for the HIG Bayside Loan Opportunity Fund IV, which will invest in distressed companies and non-control loan obligations in the U.S. The fund could provide liquidity through direct origination of loans or buy up debt in the secondary market.
According to PDI Research and Analytics, investors in the fund include the Massachusetts Pension Reserves Investment Management Board, the Texas Municipal Retirement System, the Teachers’ Retirement System of Louisiana and the Pennsylvania State Employees’ Retirement System.
The fund’s predecessor, HIG Bayside Loan Opportunity Fund III (Europe), held its final close in May 2013. That investment vehicle, however, mainly targeted debt obligations of small and middle-market European companies. The Massachusetts and Pennsylvania pension funds also made commitments of $100 million and $50 million, respectively, to the third fund, according to PDI data. Another Texas pension fund, the Texas County and District Retirement System, made a $50 million commitment.
In the announcement, Bayside executive managing director John Bolduc predicted the coming years will provide special situations investors with “compelling” opportunities which will be caused by “inefficient” secondary markets for small-cap businesses along with distressed loans and a more favorable atmosphere for opportunistic investors.
Bolduc was not available for further comment.
Bayside has seen a reshuffling of its personnel deck in recent months with both additions and departures. Most recently, the investment shop added Giuseppe Mirante as a managing director to work on European distressed debt investments from BNP Paribas. In December, Graham Emmet left Cheyne Capital and migrated to Bayside, where to help with its real estate investment, while, in January, Lionel Laurant departed Bayside, where he worked in European debt investment, for PIMCO.