Switzerland-headquartered Partners Group has raised more than $800 million for its leveraged loans program this year, it said today in a statement. Its third leveraged loans fund accounts for about two thirds of that amount, with separate account mandates accounting for the remaining third, according to a spokesman.
The firm's Private Market Credit Strategies 2013 vehicle will capitalise on the current senior secured debt market opportunity resulting from constrained banks, expiring European CLOs and the demand for refinancing, it added. It is the firm's third PMCS fund.
Private debt is one of Partners' core strategies alongside private equity, private real estate and private infrastructure, with the firm having adopted a progressive approach to the asset class. This latest vehicle has an “investor friendly” investment structure, according to the firm, with a quick ramp-up period of 12 months.
The program offers “attractive risk-adjusted return potential within a shorter duration than traditional private market offerings,” the firm said, citing the previous vehicle as having successfully achieved this rapid ramp-up and its return targets.
Juri Jenkner, managing director and co-head private debt at Partners, said in a statement: “Investors are facing an investment environment that is characterized by low growth, negative real yields in many jurisdictions and continued volatility. We are pleased that we can continue to meet our clients’ needs by accessing the favourable risk / return potential obtainable in the current private debt environment.
“We believe providers of credit to mid-cap private equity-backed companies can benefit significantly from the lack of alternative capital in this space,” he added.
The firm has invested in more than 40 leveraged loan deals so far this year.