NXT Capital has held a final close for its second senior loan fund on $783 million, according to a statement released on Thursday.
The fund, NXT Capital Senior Loan Fund II, will invest in senior debt originated and underwritten by NXT's corporate finance group, the firma said. These will include senior secured, stretch senior, unitranche, second lien, term-over-revolver and last-out term loans made primarily to private equity-backed companies across a range of industries, the firm added.
The fundraising marks a substantial expansion of the group's existing $1.5 billion asset management platform. The fund received commitments from nine institutional investors, including pension plans, insurers and foundations. Wells Fargo provided a $500 million term loan commitment to the fund.
The Teachers’ Retirement System of Illinois committed $40 million to NXT at its May meeting, according to retirement system documents.
BTIG and Berenson & Company were listed as associated brokers or dealers for the vehicles, according to SEC filings.
NXT is led by chairman and chief executive Robert Radway and other former executives from Merrill Lynch Capital and Heller Financial. The firm is headquartered in Chicago and maintains offices in New York, Atlanta, Boston, Charlotte, Dallas, Phoenix, San Francisco and Silicon Valley.
“The successful close of NXT Capital Senior Loan Fund II represents a strong endorsement of NXT Capital’s expertise in middle market leveraged lending and our track record as an asset manager,” said Radway in the statement.