Silver Point hits hard-cap of $2bn in second credit fund, doubling its target

The vehicle, focusing on senior secured direct lending, surpasses its $1bn target.

Silver Point Capital said its finance business, Silver Point Finance, has closed its second credit fund at $2 billion, doubling its $1 billion target.

The Silver Point Specialty Credit Fund II hit its hard-cap and received backing from new and old investors including sovereign wealth funds, endowments, foundations, insurance companies and family offices located in the US, Canada, Europe and Asia, the firm said in a news release. The fund was launched in September of 2019, according to Private Debt Investor research.

“We are proud that, with 25 years’ experience in providing custom financing solutions to middle-market companies, Silver Point is well recognised by borrowers as a knowledgeable and experienced partner who is able to provide financing solutions in a timely and reliable manner,” said Silver Point co-founders Ed Mulé and Bob O’Shea in the release.

The new fund received commitments of more than $193 million from public pension and sovereign wealth funds, including the New Mexico State Investment Council and the Maine Public Employees Retirement System, according to PDI research.

Silver Point’s first specialty credit fund closed in January 2017 at $552 million, surpassing its target by $2 million, according to PDI research. That fund received commitments of more than $130 million to public pension funds and endowments.

With the close of its second credit fund, Greenwich, Connecticut-based Silver Point now manages more than $5.5 billion in its senior secured direct lending strategy, which focuses on mid-market special situations loan originations. The firm was founded in 2002 and has originated $13.5 billion in more than 300 mid-market loans.