Park Square Capital, the London-based private debt firm with around $10 billion of assets under management, has agreed to sell a non-voting, passive minority stake to Bonaccord Capital, Private Debt Investor has learned. The parties to the deal have declined comment.
Bonaccord is a subsidiary of P10, a New York Stock Exchange-listed private market solutions provider, and acquires minority equity investments in alternative asset managers, especially those operating in the mid-market.
Park Square is understood to see the deal as a step towards the further institutionalisation of the firm, helping to align the team as equity holders, create a balance sheet to support further growth and enhance governance structures.
It is understood the non-voting nature of the stake means Park Square will retain full control over day-to-day business and its long-term growth strategy with decision-making processes remaining unchanged.
Formed in 2004, Park Square provides credit solutions for companies across Europe and the US and has invested more than $19 billion in senior and subordinated debt. The firm has more than 100 people based in London, New York, Frankfurt, Luxembourg, Paris, Stockholm and Seoul.
The firm has three strategies: Capital Partners, which invests in primary subordinated debt and secondary investments in the performing and stressed/distressed markets; Loan Partners, which takes sole or lead lender positions in upper mid-market European businesses with a focus on senior debt and unitranche; and Credit Opportunities, a senior-oriented strategy for large companies and discounted secondary investments in the performing market.
In May last year, Park Square raised €1.8 billion for its fourth subordinated debt fund, beating a €1.5 billion target. With leverage, the fund was able to deploy €2.2 billion, representing a 48 percent increase in investable capital over its predecessor fund.