Park Square secures €1.8bn from investors for subordinated debt fund

The fund will follow the flexible approach of its predecessor investing in both performing and dislocated credit opportunities.

Park Square has beaten its fundraising target for its fourth subordinated debt fund with commitments of €1.8 billion from investors.

Park Square Capital Partners IV and related vehicles had an initial target of €1.5 billion and, with leverage, is able to invest a total of €2.2 billion, an increase in investable capital of 48 percent over its predecessor fund. It has a 10-year lifespan and a five-year investment period.

The fund will follow the same strategy as its predecessors, investing in primary and secondary subordinated debt in both performing credit and dislocated debt. It aims to be a long-term partner to private equity firms investing in companies in both the US and Europe. The fund can alternate between high-quality debt transactions in normal market conditions and dislocated debt in periods of market volatility.

Investors include a mix of sovereign wealth funds, pension funds, insurance companies and family offices from Europe, the US and Asia.

The fund has already begun investing capital, according to sources close to Park Square, and is thought to be 37 percent invested.