Technology investor Francisco Partners has held a final close of its inaugural credit fund on $750 million.
The fund beat its $500 million target for its first credit vehicle, which focuses on lending into the rapidly expanding technology credit market.
FP Credit Partners received the backing of existing Francisco Partners investors as well a range of new institutions. It will leverage the firm’s existing knowledge and relationships within the technology industry to source opportunities to lend.
Scott Eisenberg leads the fund having joined from GSO Capital Partners in 2017 to build Francisco’s credit platform.
He said: “Having spent my career investing in technology credit, being part of the FP platform has tremendous advantages, such as unique sourcing and deep domain expertise.”
The vehicle will invest in both private and public market opportunities. Eisenberg told Private Debt Investor that private opportunities will not focus on sponsored buyouts but instead look to make loans directly to firms as an alternative to receiving equity investment.
“There are many firms which need capital to expand but they don’t want to go down the equity route in the current market where equity values are depressed.”
Public opportunities linked to market dislocation will also be sought. The fund will invest primarily in senior debt positions and all its existing portfolio and pipeline are senior, but if opportunities arose elsewhere in the capital structure the fund has the flexibility to take them.