BCP Credit closes $1.2bn second special opportunities fund

The oversubscribed special opportunities fund significantly beat its target and raised $1bn more than its predecessor fund.

Alternative asset management firm BC Partners’ credit arm, BCP Credit, has closed its second special opportunities fund at $1.2 billion, according to a news release.

BC Partners Special Opportunities Fund II will focus on illiquid and liquid opportunities across private originations and secondary investments in North American and European markets. The $1.2 billion fund, which opened in 2019, was well oversubscribed relative to its initial $750 million target.

BCP Credit’s fund received support from existing and new limited partners, with all of its institutional investors in the $200 million predecessor fund, which closed in 2017, renewing commitments.

“One difference in continuance from the first fund to the second is now we have more interest from pension funds,” BCP Credit partner Matthias Ederer said in an interview with Private Debt Investor. “That has materialized as a function of the maturity of our platform now since 2017.”

“We said to our limited partners that we will opportunistically be active in the liquid credit market during the investment period, so when COVID hit in 2020 we did just that,” Ederer said of the fund’s LP base when launching.

“We did what we said we were going to do – that is how we have the credibility and how the investor demand grew above target level,” he said further.

BC Partners’ fund targets returns of 12 to 15 percent, and will be driven by current income, capital appreciation, structural protections and monetizing illiquidity premia, the firm noted.

The London-based BC Partners is a leading alternative asset management firm that has more than €40 billion in assets under management across private equity, private debt and real estate. The firm was established in 1986. BCP Credit, which launched in February 2017, focuses on credit opportunities for middle-market companies in complex and less competitive market segments.