Charlesbank Capital Partners is targeting a $1.25bn fundraise for its third opportunistic credit fund, which will make investments in new corporate loans as well making secondary acquisitions from other private credit firms, according to a report by Bloomberg.
The report cites unnamed sources with knowledge of the matter as saying that with around $1.2bn already raised, Charlesbank is looking to hold a final closing early next year. To date, the fund has deployed $900m, according to one of Bloomberg’s sources.
Credit Opportunities Fund III will focus mainly on direct lending debt, often defined as senior secured loans to risky companies, that range from performing to stressed and distressed, and has also been buying loans at a discount from other private credit funds as well as loans from collateralised loan obligations, which repackage them and sell them as bonds.
Charlesbank targets middle market companies in both its private equity and private credit arms and the new credit fund will invest in loans of companies with an enterprise value of between $150m and $3bn according to one source.
