NXT holds final close on $912m for senior loan fund – exclusive

NXT Capital has over $900 million more in the bank to pour into mid-market companies after finalising its fourth fund dedicated to providing debt ranking higher in the capital stack.

The Chicago-based asset manager has held a final close for its NXT Capital Senior Loan Fund IV, after holding three interim closes earlier this year, the firm told Private Debt Investor. The fund consists of $312 million in limited partner contributions and a $600 million credit facility from Wells Fargo Bank.

“The interest we have seen in our asset management programs from new and existing investors further demonstrates the appeal of middle-market loans to institutional investors,” NXT Chairman and CEO Robert Radway said in a statement.

The fund will invest in senior secured loans, which include straight senior and stretch senior, alongside unitranche and some second lien investments. The LP commitments came from public and private pension plans, insurance companies and foundations as well as overseas investors.

Kelli O’Connell, NXT’s head of asset management, told PDIin its annual Roundtable in July that the firm is seeing large interest from new investors, partly because many LPs see the benefits of the asset class and are more informed now.

“A lot of investors now recognise the many attractive attributes of middle-market private debt,” she said. “Markets being what they are, we have also seen a lot of managers chasing these inflows of capital.”