Guggenheim on way to $2bn cap – exclusive

The fund, which will pursue investment opportunities in the US and Europe, will likely hold a final close by year-end.

Guggenheim Partners has just passed its fundraising goal for its second private debt fund, and a number of investors are still interested in the vehicle, according to a source familiar with the situation.

The Chicago-based investment firm has brought in $1.55 billion for its Guggenheim Private Debt 2.0, which was brought to market in May 2015 with a $1.5 billion target, PDI exclusively reported at the time. The source said the fund, which will pursue direct lending investment in the US and Europe, carries a $2 billion hard cap and will likely hold a final close by year-end.

Guggenheim declined to comment.

The source said Guggenheim is in the “later stages” of due diligence with 10 to 20 investors, most of whom would be new. While the firm generally has strong relationships with insurance companies, it wanted to expand its relationships to other LPs, with pension funds, foundations, endowments and sovereign wealth funds all counted among investors in the 2.0 debt fund.

Guggenheim is in the market with several vehicles, having launched a distressed debt fund targeting between $750 million and $1 billion, PDI exclusively reported earlier this month. The first close came in between $250 million and $400 million and will consist of commitments from existing investors, according to a source close to the fund. The source added that the fund will have a five-year investment period, allowing Guggenheim to deploy the capital during the next credit crunch, even if the next distressed cycle is years away.