junior debt

The Frankfurt-based manager says more caution among banks during the pandemic has created opportunities for subordinated lenders.

The Small Business Credit Opportunities Fund II has beaten its target by $200m.

The strategic opportunities vehicle is targeting investments striving for consistent cash yield.

Some subordinated debt investors could face difficult scenarios as the pandemic wears on.

The $500m fund has started deploying capital, focusing on corporate and real estate investments across selected countries in Asia-Pacific.

Tom Sumpster’s departure comes after LGIM’s attempts to expand its infra strategy beyond senior debt hit roadblocks.

The vehicle has held a first close on $200m and is now in the deployment phase.

As BDCs dive down into the capital structure and into sectors facing tough times, recovery rates could be significantly lower than during previous downturns. Andrew Hedlund investigates

The firm’s publicly traded and private BDCs will get new co-presidents as the current one leaves but will remain president of the BDCs’ advisor.

The Tunis and London-based firm is aiming for a first close in Q1 2020 as it targets an SME funding gap in the region.