Solar Capital Partners raises over $1.9bn across two new funds

The firm received over $750m in equity capital and created its third BDC.

Solar Capital Partners closed two new credit vehicles with over $1.9 billion in combined investable capital – one a private fund and the other a business development company.

The New York-based firm had the final closings on its SCP Private Credit Income Fund and SCP Private Credit Income BDC, the firm announced on Thursday. The pools of capital pulled in over $750 million of equity commitments.

The firm declined to comment.

The funds will be deployed to US-based mid-market companies across a variety of industries in the form of directly originated senior secured cashflow loans, asset-based loans and life science loans. The loan size allocation will average around 3 percent of the funds raised per loan, a source familiar with the situation said.

Solar Capital’s BDCs invest in both niche businesses with higher yields and in lower yielding first-lien and stretch first-lien senior secured cashflow loans, this person said.

The majority of the fundraising for the two funds came from access funds comprised of capital from Goldman Sachs’ private wealth management clients. This new BDC was formed to accommodate offshore client investments from Goldman.

SCP Private Credit Income BDC will co-invest alongside Solar Capital’s other two BDCs – Solar Capital and Senior Solar Capital. This new BDC will remain private, according to the source.

Solar Capital Partners is a private credit manager that invests across mid-market companies in the US.  At the end of June, the firm had invested over $9.1 billion in over 600 portfolio companies since its formation in 2006.