Capital Dynamics targets Q2 close for debut credit fund – exclusive

Capital Dynamics is aiming to hold a first close on its debut credit fund late in the second quarter of 2018, PDI’s sister title Private Equity International has learned.

The firm is expected to begin accepting commitments for the vehicle – for which it is targeting around $500 million – in early Q1 2018, according to a source familiar with the matter.

Capital Dynamics declined to comment on fundraising matters.

The fund marks the firm’s first foray into lending following the launch of its private credit strategy in September. Capital Dynamics will primarily target directly originated senior secured loans, including first lien, unitranche and second lien loans, for private equity sponsored companies in the US lower mid-market, according to its website.

Capital Dynamics joins a growing number of private equity firms expanding into private credit. Texas-based The Sterling Group is raising its initial private credit vehicle with a target of $200 million-$250 million, Private Debt Investor reported in August.

Chicago and San Francisco-based technology specialist Thoma Bravo is also is seeking $750 million for its debut credit fund. BC Partners is reportedly targeting $200 million for its first credit vehicle after launching a dedicated unit in February.