Adams Street Raises $1.1 Billion for Private Credit Strategy

Adams Street Partners has secured nearly $1.1 billion in commitments for its latest private credit program, according to a person familiar with the matter.

The firm began raising cash for the strategy, through which it will provide financing to private equity-backed middle-market companies, in late 2019, said the person, who asked not to be identified. The cash raised represents an interim close, with plans for further fundraising.

A spokesman for Adams Street declined to comment.

Helmed by Bill Sacher, Adams Street’s private credit team targets middle-market companies with $150 million to $750 million in enterprise value, according to its website. In December, Adams Street said it closed a $740 million global fund partly for private debt and in May 2019 said it completed raising $1.1 billion for its inaugural private credit program.

The lender joins a slew of other firms that have raised money in recent months to provide debt to mid-sized companies. Direct lender Golub Capital in May said it brought in $3 billion in dry powder and private credit firm Churchill Asset Management in March said it closed a $2 billion middle-market loan fund. Meanwhile, Owl Rock Capital Partners is targeting $5 billion for loans to upper middle-market companies.

After an anemic start to the year amid the corona virus pandemic, private credit fundraising has picked up as investors hunt for yield and stream into distressed strategies. In the second quarter, $9 billion was raised globally for direct lending, according to London-based research firm Preqin.

©2020 Bloomberg L.P.

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