TA closes new debt fund on $1.1bn

The latest fund focusing on subordinated debt is double the size of its predecessor and was raised in three months.

TA Associates, a Boston-based private equity firm, has announced the close of TA Debt Fund V, launched in June 2022. Its total commitments of $1.1 billion are well beyond its initial target  of $600 million, and more than double the size of its predecessor fund, TA Subordinated Debt Fund IV, which closed on $542 million.

TA Debt Fund V, which closed in just three months, has a broad mandate in the corporate sector. It will invest in subordinated debt, as did its predecessor funds, but will also include senior secured debt, and might invest across multiple tranches of credit in the same company.

The fund will also have a global reach: a mandate that takes in not only North America, but Europe and Asia-Pacific as well. 

TA Associates chief executive officer Ajit Nedungadi said: “We are enormously grateful for our investors’ continued confidence in the team and our ability to deliver value to our partners and portfolio companies.”

The first of the predecessors was launched in 2000 as TA Subordinated Debt Fund. The series now has total assets under management of $47.5 billion, with portfolio companies in five target sectors: technology, healthcare, financial services, consumer and business services. 

A spokesperson for TA was unable to provide information on limited partners in Debt Fund V. But its precursor, Debt Fund IV, received commitments from, among others, Dorinco Reinsurance Co, Employees Retirement System of Texas, the Harvard Management Company and the New York State Common Retirement Fund, according to PDI data.