Sankaty gets closer to distressed fundraising goal

The Boston-headquartered credit firm is eyeing sectors such as energy, shipping, media and mining for its global distressed vehicle, which is targeting $3.5 billion overall.

 

Sankaty Advisors, the Bain Capital-owned credit firm, has collected $2.1 billion so far for its Sankaty Credit Opportunities Fund VI, a global distressed debt fund. The vehicle is targeting $3.5 billion overall, as PDI previously reported . The fund expects to hold another close before year-end and, if necessary, a third one sometime in the first quarter, say sources familiar with the fundraise.

 

A spokeswoman for Sankaty declined to comment.

 

Filings with the Securities and Exchange Commission (SEC) show Sankaty as raising about $1.8 billion across three-different share classes. The remaining $300 million or so represents money raised from a different investor tax class that doesn't require filing with the SEC, explained a source familiar with the vehicle.

 

Earlier this year, Sankaty sent a note to investors saying that it foresaw distressed opportunities within several challenged industries, including energy, shipping, media and mining.

 

Many other firms have been raising distressed vehicles in anticipation of a market downturn in the US. Oaktree Capital Management is raising as much as $10 billion for its Oaktree Opportunities Fund X and Xb. The Carlyle Group and Oak Hill Advisors, meanwhile, have both recently started raising $2 billion each in distressed funds targeting both the US and Europe.

 

Boston-headquartered Sankaty was founded in 1998 as Bain Capital's dedicated credit arm. It now handles $25.9 billion in assets across leveraged loans, high-yield bonds, distressed debt funds, CLOs, direct lending vehicles and mezzanine strategies. In addition to its Boston head office, the firm has its other US locations in New York and Chicago. It also has international outposts in London, Dublin, Melbourne and Hong Kong.