THL Credit has closed its second Greenway fund on $187 million, the firm announced in a statement on Friday.
The firm formed Greenway II in January, according to the firm’s annual report. THL Credit’s previous Greenway fund, a $150 million vehicle, had been completely invested across 25 deals as of mid-2012.
The Greenway funds are typically invested alongside THL Credit’s business development company (BDC), a direct lender of subordinated, or mezzanine, debt and second lien senior secured debt to mid-market companies in the US.
“What we had been doing is bringing in co-investors ad hoc … then in January, 2011 we went programmatic with Greenway I. It was a fund designed to invest very synergistically with the public BDC,” THL Credit chief Jim Hunt told PDI in April. “Our structure, as a portfolio company of, and accretive to, the BDC, is designed to align interests, and it’s appropriate for investor who isn’t seeking liquidity, but finds the underlying risk assets attractive and appropriate.”
“It’s good business sense for a manager of a business like a BDC to seek diversity in our investments and our assets. That means we don’t want to over-concentrate.”
In addition to closing its Greenway fund, THL Credit also announced that it had added $85 million to its credit facility, which now totals $325 million. ING Capital arranged and led the facility.