Alternative investment firm Post Road Group has announced the closing of its second credit opportunity fund with more than $300 million of capital commitments, according to a news release.
The Post Road Special Opportunity Fund II LP will invest in a variety of corporate strategies, including secured credit, structured equity and special situations in mid-market technology, media, telecommunications and business services sectors, the firm said. The predecessor credit opportunity fund closed in 2019 at $100 million.
“There was a natural progression to raise Fund II utilising the same sourcing methods, targeting the same industries and structuring deals in a similar manner,” said Michael Bogdan, managing partner at Post Road and head of its corporate investing practice, in an interview with Private Debt Investor of how the new fund came to be raised.
Post Road will seek to generate solid risk-adjusted returns through structured credit investments with equity-like upside in sectors that show less cyclicality. The firm’s corporate credit strategy makes investments between $15 million and $75 million in size with senior secured debt, structured equity and unitranche loans.
“Our investment focus is to provide growth capital and acquisition financing to existing businesses – we want to help companies with their continued growth,” Bogdan said to PDI of the fund’s investment strategy. “We can support their financial growth with relationships in the market and operational expertise.”
The new fund, which exceeded its target, received backing from existing limited partners and new global investors such as pension funds, fund of funds, university endowments, private foundations and family offices. It has committed roughly 45 percent of total capital commitments, the firm said.
Stamford, Connecticut-based Post Road is an alternative investment firm that specialises in mid-market corporate strategies including private credit, private equity and real estate. It has completed $1.5 billion in investments since formation in 2015.