Greypoint Capital holds first close on second debt fund

The vehicle is targeting C$200m and will invest primarily in industrials, energy and real estate.

Greypoint Capital held a first close on its second private debt fund, which will invest up and down the capital structure, the alternative lender said in a statement.

The Toronto-based firm is nearing its target of C$200 million ($151 million; €133 million), Holly Allen, Greypoint’s president and chief executive officer, told Private Debt Investor. The firm’s first fund closed in 2013 on an undisclosed amount.

Fund II has not begun deployment yet and will follow the same strategy as the first fund. Greypoint focuses its investments on the industrials, energy and real estate sectors. However, the firm is open to investing in other industries, according to the press release.

The fund will invest in Canadian mid-market companies valued at over C$100 million and focus on first-lien, second-lien and mezzanine debt strategies. These include term loans, bridge loans and private bonds with loan sizes ranging from C$10 million to C$150 million through co-investments with the firm’s various partnerships, Allen said.

Fund II, so far, is made up of repeat investments from family offices based throughout Canada.

The first fund has been entirely deployed. It has had “above average” market returns so far and will continue to mature for the next three to four years, according to Greypoint.

Greypoint Capital is a “heavy asset” investment firm that was founded in 2013 by Holly Allen, a former managing partner at PricewaterhouseCoopers and vice-president at Brookfield Asset Management.