Golding closes sixth private debt fund of funds

The Munich-based asset manager raised €850m of new capital in 2015 including final commitments to its sixth private debt fund of funds.

Golding Capital Partners sixth private debt fund of funds closed on €413 million at the end of 2015, beating its €300 million target.

The firm has also launched its seventh private debt fund, Golding Private Debt SICAV 2016, PDI understands.

Golding Private Debt SICAV VIII, which was the firm’s sixth private debt fund and its eighth SICAV, reached a first close of €100 million in March 2014.

It attracted commitments from a range of mainly German institutional investors, said Golding’s head of private debt, Oliver Huber. More than half are pension funds with some mid-size insurers also investing in the fund.

Around 80 percent of the investors re-upped from the previous vehicle, while the size of the fund was driven by a combination of increased commitments and a larger number of LPs, said Huber.

Growing numbers of German investors are becoming comfortable with private debt and are seeking a higher yielding alternative to more traditional fixed income investments. Many are attracted to the fund of funds structure because it allows them to achieve greater diversification, Huber added.

SICAV VIII is targeting returns of around 8 percent net of both managers and Golding’s fees. It will invest via 15 different managers in both Europe and the US.

Golding has established relationships with managers such as ICG and Ares in Europe and Golub, Cerberus and Oaktree in the US.

The fund has a flexible mandate with around 60-70 percent of the capital going to managers focused on primary senior or mezzanine debt investment. Unlike previous vehicles, the latest fund includes a 30-40 percent allocation for distressed or special situations investment.

Golding decided to expand the mandate to increase diversification and to include strong distressed debt managers who can source opportunities throughout the market cycle, said Huber.

The fund is about 50 percent committed and will make between six and eight new investments with European and US managers over the course of 2016, including one or two more distressed/special situations players.

SICAV VIII has a 20 percent weighting available for secondaries with two secondary stake purchases already completed, added Huber.

“SICAV VIII is particularly attractive for investors seeking current income. The first distribution came at the end of 2015 shortly after the fund held its final closing,” Huber said.  

At just under €850 million, the asset manager raised a record volume of new capital in 2015 across its private equity, private debt and infrastructure investment programmes.

Golding Capital Partners has offices in Munich, Luxembourg and New York. The asset manager handles nearly €5 billion in assets and has relationships with 130 institutional investors.