NXT Capital, the Chicago-based mid-market lender, has raised $215 million for a first close on its NXT Capital Senior Loan Fund IV, according to two Securities and Exchange Commission (SEC) filings. The fund is targeting $300 million in equity capital commitments and plans to raise about $500 million in bank leverage for a total of about $800 million, as PDI previously reported. The firm expects to finalize fundraising in the first quarter, say people familiar with NXT.
The firm began raising money in September, after holding a final close on its third senior loan fund last January. That fund had a similar debt-to-equity ratio. It raised $291 million in equity capital and sourced the rest through bank credit lines.
The Teacher Retirement System of the State of Illinois recently invested $150 million in the fourth fund. The US pension fund also invested in NXT’s third senior loan fund and has invested into the alternative investment manager’s equity too. NXT has Greenwich, Connecticut-based Stone Point Capital as its largest stakeholder with the Ontario Teachers’ Pension Plan (OTPP) also holding a significant interest.
NXT has historically provided corporate loans of up to $70 million, though the firm is now moving up market and aiming to lend between $125 million to $250 million at the upper end.
The firm also announced that it provided a senior credit facility to refinance the WellSpring Pharmaceutical Corporation today. The company is backed by sponsors Sentinel Capital Partners and Ancor Capital Partners. The transaction also backed WellSpring’s add-on acquisition of FDS, a personal care brand that specialises in feminine hygiene products. The loan amount wasn’t disclosed. NXT said it was the joint lead arranger and joint bookrunner on the facility.
NXT provides financing solutions through its corporate finance, equipment finance and real estate finance groups. The firm is based in Chicago with additional offices in Atlanta, Charlotte, Dallas, Los Angeles, Nashville, New York, Phoenix, San Francisco and Stamford.