Andrew Hedlund
The mid-market continues to attract private debt investors as the Federal Reserve cuts interest rates. Could this provide more juice to the economy and fuel a red-hot deal market, or are we nearing the end of the credit cycle?
Managers believe the growth of alternative asset investments coming from Asia is set to continue over the next five years, writes Andrew Hedlund.
It also has positions in two other business development companies: Great Elm Capital Corporation and MVC Capital.
The firm is seeking more than double its $370m debut fund, which won a $100m allocation from a Minnesota retirement plan.
The fund will invest in non-syndicated debt and illiquid large-cap deals.
The firm may oversee more than $10bn of assets for the strategy a little more than a year after it formally parted ways with FS Investments.
Alcentra BDC shareholders will retain 19% of the combined entity, while the buyer will reduce its management fee and up its hurdle rate.
The new vehicle has purchased several investments, all of which are portfolio companies of the firm’s publicly traded Goldman Sachs BDC.
Credit managers are now making offers for almost multibillion-dollar loans. But as private credit heads into uncharted waters, the asset class's next big challenge could come from the very force that catalysed its growth.
The alternative asset manager’s new vehicle is the latest vintage of its Strategic Opportunities fund series, which is aiming for high single-digit to low double-digit returns.