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AnaCap Credit Opportunities Fund II beats target with GBP265 million

AnaCap Financial Partners has held a successful first round of closings of its Credit Opportunities Fund II, with commitments already at GBP265 million (USD408 million), surpassing its GBP250 million target after just five months on the road.

The Fund, which has a hard cap of GBP350 million, targets performing, semi-performing or non-performing consumer and SME debt, including loans, leases, securities or other obligations requiring active asset management.

It will seek to capitalise on the rapidly evolving market opportunity in this space, driven by the need for financial institutions to de-lever after years of expansion. The financial services market now accounts for 29% of European GDP, with bank assets totalling over 200% of GDP, compared with just 75% in the US.

The cycle is being magnified by historical changes to the regulatory framework as well as the dramatic contraction of wholesale and securitisation funding which, combined with weak economic performance and rising unemployment, is forcing a fundamental restructuring of the financial system, expected to take place over many years.

Investors in the Fund include the State of New Jersey, Hamilton Lane and OPERS. The Fund has a three-year investment period and an eight-year life.

Justin Sulger, Partner and Head of Credit Opportunities at AnaCap, says: “We are pleased and humbled to have received such strong investor support, exceeding the target for our second Credit Opportunities Fund within five months. Financial institutions face a massive refinancing wall and increased capital requirements in the coming years, which combined with a deteriorating capital-raising environment makes significant deleveraging inevitable.

“The fund will benefit from AnaCap’s track record as a financial services specialist, including our extensive experience investing in regulated businesses, and building and managing servicing platforms.”

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