Triton closes latest private debt fund on €744m

The fund, Triton Debt Opportunities II, had a target size of €550m and is already 40% invested.

Triton Partners, the London-based fund manager, has posted a final close of its Triton Debt Opportunities II fund on €744 million, beating a target size of €550 million. The vehicle is targeting a 15 percent gross internal rate of return.

The firm has not disclosed individual investors – though one investor is understood to be the Employees Retirement System of Texas – but said it had received strong support from European and US pension funds. It has also raised a separately managed account which will serve as an overflow account for the fund. It did not say how much the SMA was worth.

Triton said it had taken advantage of “significant price dislocation” during 2020 and, as a result, the fund is already 40 percent invested. It said it saw an opportunity to invest further in the market’s recovery phase.

TDO II is investing in the same sectors and geographies as Triton’s private equity funds, focusing on industrials, business services, consumer and healthcare companies in the Nordics, DACH and Benelux regions.

The fund takes non-control positions across the capital structure in mid-market companies with an average investment size of between €10 million and €40 million. It will typically focus on first lien senior secured debt.

Triton’s 2014-vintage Debt Opportunities Fund I closed on €532 million, beating a target of €350 million. Investors in that fund included Employees Retirement System of Texas, Tennessee Consolidated Retirement System and The State Pension Fund of Finland.

Triton Debt Opportunities was formed in 2013 as the credit arm of investment firm Triton Partners, which was established in 1997 and has been investing in debt since 2009.