Silver Point Capital, the US credit hedge fund, is raising its first private lending fund. The Silver Point Specialty Credit Fund began fundraising this year and collected $170 million towards a first close in July. It’s targeting $400 million-$500 million overall, according to sources.
Silver Point declined to comment.
The firm was established by two Goldman Sachs special situations and distressed debt specialists, Edward Mulé and Robert O'Shea, in 2002. The duo are tenured in lending from their Goldman days and Silver Point has been focused on credit and special situations since its launch.
The firm made preliminary filings earlier this month seeking exemptive relief from certain provisions of the Investment Company Act of 1940, which governs mutual funds and BDCs. The filings suggest that the firm is considering setting up a BDC after raising the private fund. The approvals from the Securities and Exchange Commission often take 18-24 months and Silver Point, like other firms with new direct lending vehicles including TCW and AllianceBernstein, has submitted the filings to have the option of rolling some capital into a BDC at a later date.
The credit firm is based in Greenwich, Connecticut and has about $8.2 billion in assets under management.