Portfolio Advisors is raising money for its new Portfolio Advisors Direct Credit Opportunities Fund II, on the heels of its acquisition of DLJ Investment Partners. The new fund will invest in a variety of debt instruments, including senior secured and mezzanine loans. It will focus primarily on the US, but may also venture into Europe as opportunities present themselves, according to people familiar with the firm’s plans. Portfolio Advisors declined to comment.
The firm recently received a $150 million commitment from an existing institutional client and will now start more actively marketing the fund, the sources said. The target for the vehicle is $500 million. The firm is also offering investors an option where they can only pay fees on invested capital, as opposed to committed capital.
Darien, CT-based Portfolio Advisors offers discretionary and non-discretionary private markets advisory services to institutions. Portfolio Advisors had already launched the Portfolio Advisors Credit Strategies Fund last year and later acquired DLJ from Credit Suisse towards the end of 2013. The new fund will be managed by both Portfolio Advisors and DLJ portfolio managers.