Adams Street Partners has closed its third private credit vehicle with $7.5bn in total capital, including leverage, marking a significant expansion of its direct lending platform and bringing total assets in the strategy to $15bn.
The latest fundraise, which includes commitments to Private Credit Fund III, drew backing from a broad base of institutional investors, with around 40% of capital sourced from outside the US. The firm said the strong international participation reflects growing demand for private credit exposure and supports its continued push to build out its European presence alongside its established North American operations.
The close positions private credit as Adams Street’s second-largest strategy, highlighting the rapid growth of the platform since its launch in 2016. The firm focuses on providing senior financing to sponsor-backed mid-market companies, an area that continues to attract investor interest amid a challenging bank lending environment.
According to the firm, the underlying portfolio in the latest fund is characterised by relatively conservative credit metrics, including loan-to-value ratios below 40% and average leverage of around five times earnings, alongside covenant protections designed to enhance downside resilience.
Bill Sacher, partner and head of private credit at Adams Street, said the fundraise underscores investor confidence in the firm’s ability to deliver consistent returns while prioritising capital preservation. He added that the broader Adams Street platform has been instrumental in sourcing opportunities and supporting underwriting.
Jeff Diehl, managing partner and head of investments, said differentiation in sourcing and credit discipline remains critical as competition intensifies across private credit markets, adding that the firm is well positioned to continue scaling the strategy.
The fundraise builds on recent momentum for the business, including the launch of a $350m collateralised loan obligation earlier this year.
