CVC raises $657m for US direct lending fund – exclusive

The vehicle will follow its predecessor’s strategy of lending to mid-market US companies across a range of sectors.

CVC Credit Partners has closed its second-generation US direct lending fund above target at $657 million.

The fund, CVC Credit Partners US Direct Lending Fund II, will follow the same strategy of its predecessor fund, investing in established US mid-market businesses with an EBITDA of $10 million to $40 million.

It exceeded its $500 million target with capital raised from a diverse investor base of pension funds, insurance companies and asset managers from North America, Europe, Asia and Australia.

The strategy will provide privately negotiated, senior-secured, floating rate loans for US mid-market companies across a broad range of sectors. CVC has already deployed more than $1 billion to its US direct lending strategy across more than 70 investments.

CVC Credit said its fundraising will enable it to take advantage of new opportunities that arise now that the credit cycle has turned.

Tom Newberry, global head of private debt at CVC Credit Partners, said: “Given the current market volatility, we are fortunate to have a significant amount of dry powder to invest.”

CVC Credit chairman, Hamish Buckland, added: “This successful fundraising fits perfectly with our strategy of making sure we have significant capital available across the CVC Credit platform to deploy when the credit cycle turns. The market has clearly tightened, which bodes well for this new fund.”

Last year, CVC Credit Partners closed a $1.42 billion special situations fund, which seeks to invest in stressed and distressed credit in Europe and North America.