NXT Capital has closed the NXT Capital Senior Loan Fund II, a USD783m leveraged loan fund that will invest in senior debt transactions originated and underwritten by NXT Capital’s corporate finance group.
These include senior secured, stretch senior, unitranche, second lien, term over revolver and last-out term loans made primarily to private equity-sponsored middle market companies in a wide range of industries.
Senior Loan Fund II represents a substantial expansion of the corporate finance group’s existing USD1.5bn asset management platform and further extends the company’s ability to serve its middle market client base. The fund received equity commitments from nine institutional investors, including pension plans, insurance companies and foundations. In addition, Wells Fargo Bank provided a USD500m term loan commitment to the fund.
“The successful close of NXT Capital Senior Loan Fund II represents a strong endorsement of NXT Capital’s expertise in middle market leveraged lending and our track record as an asset manager,” says Robert Radway (pictured), NXT’s chairman and chief executive. “We appreciate investors’ vote of confidence in our team and the attractiveness of this investment opportunity.”
“The addition of Senior Loan Fund II to our existing asset management platform further solidifies NXT’s position as a leader in the middle market space,” says John Finnerty, head of NXT Capital’s corporate finance group.
