Silver Creek’s evergreen fund eyes $500m – exclusive

 The Seattle-based firm will put money into alternative yields and opportunistic investments with a majority of the portfolio’s capital going to Europe.  

Silver Creek Capital Management is looking to raise a sixth private credit fund with an initial target of between $250 million and $500 million, a market source has told PDI.

The Seattle-based firm is planning an evergreen fund with an initial vintage period that will last through 31 December 2017. There will be successive tranches for the credit fund following the initial vintage period, the source said. The firm runs a multi-manager portfolio that invests in underlying credit funds.

The sixth private credit fund will have 60 percent to 75 percent of its assets allocated to alternative yield funds, which includes middle-market direct lending, rescue financing and special situations. The remaining 25 percent to 40 percent of assets will be put toward opportunistic investments, a category that involves non-performing loans, asset financing and leasing.

In terms of geography, the credit fund will invest a majority of its capital in Europe, the source said. The remainder will likely be invested across Asia, Australia and North America.

The committed capital will be reinvested until the LPs decide to terminate the commitment after at least two years, according to documents obtained by PDI. There would be no leverage at the fund level, which comes with a 0.65 percent management fee on its net asset value rather than committed capital. The fund does not charge an incentive fee.

Silver Creek has $6.8 billion in assets under management, $2.5 billion of which is in private credit. More than half of Silver Creek’s AUM comes from insurance firms (35 percent) and pension funds (32 percent), according to the documents. The firm’s fifth private credit fund, which was a closed-end fund, raised $800 million between fund capital and separate accounts.