Victory Park Capital has launched a second incarnation of its senior debt fund, in which it doubled its target from the original investment vehicle.
The Chicago-based mid-market lender disclosed in a US Securities and Exchange Commission filing on 21 November it had launched VPC Specialty Finance Fund II, which carries a $500 million target.
Its predecessor, VPC Specialty Finance Fund I, was launched in 2014 with a goal of $250 million, according to Private Debt Investor data. Park Hill Group served as placement agent for the first fund, according to regulatory documents, however no placement agent was listed for the second fund.
Victory Park declined to comment.
The firm also filed an update on its VPC Investors Fund C in early October, which, according to PDI data, has a $75 million target. Fund C, also a senior debt fund, almost tripled its target by pulling in $217 million for the fund.
Notable investments Victory Park made this year include a $100 million add-on financing to Fort Worth, Texas-based online lender Elevate, bringing the total size of the facility to $545 million. The additional funding will be used to expand the company’s credit products in the US and the UK.
Capital raised for investments higher in the capital structure has lagged this year behind mezzanine and distressed debt, according to PDI’s third-quarter fundraising report. Senior debt investment vehicles pulled in $15.15 billion for the nine months ending 30 September, coming in third to junior debt funds’ $17.88 billion and distressed investors’ $16.98 billion.
Statistics from the aggregate amount of commitments sought by vehicle type tell a similar story. At the end of the third quarter, the senior debt funds in market were seeking $64.9 billion. Distressed debt took the top spot this time, with general partners currently seeking $80.65 billion for the strategy, while mezzanine debt vehicles were in market for $79.33 billion.
Currently, only two of the 10 largest funds in market are senior debt funds, both of them focused on Europe. GSO Capital’s GSO European Senior Debt Fund and the Hayfin Capital Management’s Hayfin Direct Lending Fund II, respectively, are seeking €3 billion and €2.25 billion.
Fewer US-focused senior debt funds list as targets the massive figures similar to GSO’s recently closed $6.5 billion mezzanine fund and Oaktree Capital Management’s still-in-market Oaktree Opportunities Fund Xb distressed debt fund.