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CVC Credit’s latest US-focused direct lending fund exceeds USD500m target

CVC Credit Partners has managed to raise USD657 million for its second US focused direct lending fund, CVC Credit Partners US Direct Lending Fund II. Fund II will follow the same strategy as its predecessor fund, investing in established US middle market businesses. Fund II surpassed its USD500 million target and is also larger than its predecessor fund. Fund II enjoys a diverse investor base of institutional capital, including pension funds, insurance companies, asset managers, and private wealth, spread across North America, Europe, Asia, and Australia. 

CVC Credit’s US direct lending strategy seeks to provide investors access to a diversified and balanced portfolio of privately negotiated, senior-secured, floating rate loans to established US middle market companies with EBITDA of USD10 million to USD40 million. To date, CVC Credit Partners has deployed over USD1 billion of commitments for its US direct lending strategy, having made more than 70 investments across a broad range of sectors. 

Tom Newberry, global head of private debt at CVC Credit Partners, says: “We are very pleased to have been able to close Fund II in such a challenging environment, and are extremely grateful to our supportive investor base which has allowed us to exceed our fund target. Given the current market volatility, we are fortunate to have a significant amount of dry powder to invest. We continue to review attractive investment opportunities and expect to be able to construct a portfolio of high quality assets for Fund II.”

Hamish Buckland, chairman of CVC Credit Partners, adds: “This successful fundraising fits perfectly with our strategy of making sure we have significant capital available across the CVC Credit platform to deploy when the credit cycle turns. The market has clearly tightened, which bodes well for this new fund. It is also another key step in the continuing development of our private debt franchise.” 

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