Churchill Asset Management amasses $12bn for senior lending

The $12bn figure includes the closings of the firm’s flagship senior loan funds, Churchill Middle Market Senior Loan Fund III and Senior Loan Fund IV, which are levered and unlevered, respectively.

Churchill Asset Management, an investment-specialist affiliate of Nuveen, has raised more than $12 billion in third-party committed capital for its most recent senior lending programme.

The figure includes the closings of the firm’s flagship senior loan funds, Churchill Middle Market Senior Loan Fund III (levered) and Churchill Middle Market Senior Loan Fund IV (unlevered), as well as Nuveen Churchill Direct Lending Corp, a registered fund, and related separately management accounts, which are confidential.

These entities together have attracted equity commitments from a range of approximately 150 institutional and high-net-worth investors from North America, Europe, the Middle East and Asia.

The investors include insurance companies, endowments, foundations and family offices, as well as private and public pension plans. With regard to the latter, PDI data shows, for example, that the Churchill Middle Market Senior Loan Fund III closed in June 2021 with a $15 million commitment from the Police & Fire Retirement System of the City of Detroit.

Churchill has long raised funds from public pensions. The firm’s Churchill Middle Market Senior Loan Fund II closed in March 2020 with a commitment from the London Borough of Merton Pension Fund.

In a statement, Ken Kencel, president and chief executive officer of Churchill, said, “The senior lending class is particularly attractive in today’s market environment given the floating rate nature of the investments, strong current income potential, significant lender protections and senior position in the capital structure.”

Approximately half of Churchill’s committed capital is devoted to the senior lending strategy.