BC Partners credit arm tops $1bn AUM – exclusive

The firm has locked down several new sources of capital, adding an SMA, and is on track to beat the target for its debut opportunistic fund.

BC Partners’ credit arm is on track to surpass the target set for its debut opportunistic vehicle and has also won another separately managed account, according to a source familiar with the situation.

The New York-based debt group will have cleared its $150 million target for BCP Special Opportunities Fund I, which has a hard-cap of $200 million, by the end of the summer. The vehicle includes commitments from the firm’s partners, as Private Debt Investor previously reported.

BC Partners also won another $200 million separate account for its credit business. The firm had several additional SMAs locked up last summer totalling an aggregate of $500 million. BC’s credit assets under management has passed $1 billion, the source said.

A representative for BC declined to comment on the fundraising.

The firm has been in the process of building out several planks in its credit platform, which it launched in February 2017, led by Ted Goldthorpe, formerly of Apollo Global Management.

BC also cleared the C$25 million ($19.03 million; €16.26 million) fundraising goal that was contingent on it becoming advisor to Marret Resource Corporation, according to a statement issued last month. The Toronto-based natural resource lender announced plans to pivot away from its business of investing in energy, precious metals and other commodity-based loans. It will instead focus on non-cyclical senior loans under BC’s management.

In addition, BC has filed with the Securities and Exchange Commission its intent to launch a business development company: BC Lending Corporation. It will invest in companies with EBITDA between $10 million and $100 million, though it will focus on companies at the lower end of that range.

In addition to expanding its range of credit products, the firm recently launched a real estate business headed by Stéphane Theuriau, previously chairman and co-manager of Paris-based real estate developer and fund manager Altarea Cogedim.