Golding Capital Partners (GCP) has raised €331 million on a first close of its latest private debt fund-of-funds investment vehicle.
GCP is aiming to raise €600 million on a final close and has so far secured more than the half amount after five months of fundraising. The firm is expecting to reach its goal at the end of the year.
“With interest rates at their current low levels, alternative investments are indispensable for institutional investors,” said Jeremy Golding, founder of GCP. “High-yield investments in the private debt segment are increasingly an alternative to institutional investors’ traditional fixed-income allocation.”
The vehicle is targeting investments in European and US-focused strategies specifically targeting fast growing mid-market businesses. The fund is targeting a blended net IRR of around 8 percent.
Golding Private Debt 2016 is predominantly focused on senior loan investments, although it is open to mezzanine and unitranche instruments. The firm also invests in opportunistic credit strategies and finances tickets between €20 million and €40 million.
Overall, it is aiming to develop a portfolio of around 300 loans across a three-year investment period.
The firm is attracted by managers demonstrating a proven track record of investment, even during periods of market uncertainty. It prefers active credit managers taking control of their investments.
GCP’s predecessor vehicle raised €413 million from institutional investors on a final close at the end of 2015. In April, the firm secured a €100 million mandate from the German pension fund TÜV SÜD Pension Trust to manage its private debt portfolio.