Bridgepoint Credit has transferred a €1.2bn ($1.4bn) portfolio of European direct-lending assets into a new continuation vehicle led by Pantheon, providing investors in its 2017-vintage fund with an opportunity to either realise their holdings or remain invested, according to a report by Bloomberg.
The portfolio comprises senior secured loans to European middle-market companies that were originated by Bridgepoint Direct Lending II (BDL II), an older direct-lending strategy managed by Bridgepoint Credit.
The transaction allows existing BDL II investors to choose between taking cash from the portfolio or rolling their interests into the newly established vehicle. Bridgepoint Credit said providing liquidity to investors was one of the key objectives of the transaction.
Paul Johnson, deputy managing partner and chairman of direct lending at Bridgepoint Credit, said some investors would have expected the underlying investments to have been monetised after roughly three years and may now be seeking an exit.
Pantheon is the lead investor in the continuation vehicle. Toni Vainio, partner and head of European private credit at Pantheon, said secondary transactions can provide both managers and investors with a route to liquidity before funds need to be extended.
Pantheon has previously invested in Bridgepoint Credit funds and has deployed approximately $4.6bn across 63 European private credit secondary transactions since 2018.
Evercore acted as financial adviser to Bridgepoint Credit, while Kirkland & Ellis provided legal advice. Proskauer Rose advised Pantheon.
