Fund Finance

Banks hitting concentration limits and syndicating deals, insurance companies coming in as both buyers and lenders, and even rising interest rates all point to a bigger slice of market for non-banks.

NAV structures are now able to suit both borrowers’ goals and investors’ yield targets, but some are worried certain structures go too far, including one that essentially gives borrowers equity at the cost of debt.

Credit fund managers are increasingly looking for liquidity, but in the past their options have been limited.

Having started life purely as a direct lender, the UK-based fund manager has recently launched several other strategies. John Bakie met with co-founder Symon Drake-Brockman to find out more

The firm, which has raised €2.6bn for its debut lending fund, is agnostic about whether it’s viewed via a preferred equity or credit lens.

The firm’s first credit fund comfortably beat its €1.5bn target to lend to private equity managers seeking growth or LP liquidity.

The firm hopes to tap into demand for late-cycle lending among the private equity fund community.

The fund will focus on fund financing, including NAV loans and preferred equity offerings.

Of the the firm’s 15 NAV loan and preferred equity deals in 2021, 80% were done with top 100 private equity managers by size, says an executive at the lender.