Portfolio Advisors, a private markets-focused investment firm, has held the closing of PA Direct Credit Opportunities Fund II (PADCOF II) with total commitments of USD740 million, reaching the top end of its target fundraising range.
The fund received support from existing and new investors, which included pension funds, insurance companies, foundations, endowments, family offices and high net worth individuals both in the US and abroad.
To date, PADCOF II has invested over 30 per cent of its capital in 10 companies.
Consistent with Portfolio Advisors’ direct credit investment team’s prior experience, PADCOF II partners with top-tier private equity sponsors to provide junior debt financing to US middle market companies undergoing buyouts, recapitalisations or growth equity transactions. Investments are typically in the form of second lien loans, senior notes or senior subordinated notes.
Led by Chuck Harper and Igor DaCosta, Portfolio Advisors’ direct credit investment team is the former DLJ Investment Partners team, which Portfolio Advisors acquired from Credit Suisse in December 2013. The team’s senior investment professionals, who have worked together for 17 years, have a lengthy and successful track record in the direct debt space, having invested nearly USD2.2 billion in 50 middle market companies.
“We are extremely grateful for the show of support from both existing and new investors, and are appreciative of their confidence in the team and our business model,” says Harper.
“GPs are looking for partners whom they know and can trust to execute. The Portfolio Advisors debt platform is well-positioned to partner with these GPs on attractive investment opportunities,” says DaCosta.
PADCOF II is the first fund raised by the direct credit investment team under the Portfolio Advisors umbrella. This strategy joins the equity co-investment business as part of the direct investment platform at Portfolio Advisors.
