Constitution Capital Partners, which invests in North American mid-market buyout funds and also makes direct investments, is launching a credit strategy and has hired Daniel Clare as a partner to lead the firm's opportunistic credit team, Private Debt Investor sister publication Private Equity International reports.
Clare will also head Constitution's new office in New York.
“We think it's a natural extension,” said Daniel Cahill, a managing partner at CCP. The firm's credit strategy will exclusively be direct credit, and separate from its private equity investments, he added.
One source familiar with the matter noted that the firm is also raising a credit-dedicated fund targeting an undisclosed amount, although Cahill declined to comment on fundraising.
“We see co-investment opportunities from a lot of our partnerships and we pick and choose there,” Cahill noted. “We're also told by our GPs that a lot of them are looking for debt.”
The firm will provide junior debt, unitranche and mezzanine debt, he said, adding that “our clients are looking for an alternative to fixed income with a higher return”.
Clare recently worked as a managing director at Ascribe Capital, formerly known as American Securities Opportunities Fund. In his career, he's also served as senior managing director at Diamond Castle.
He started on Monday and will report to Cahill and managing partner John Guinee. Boston-based Constitution Capital also plans to hire additional professionals to staff its New York office, including an associate and potentially a mid-level and a senior level investment professional to focus on debt.
The firm currently manages about $2.7 billion of assets.