Portfolio Advisors Raises $740M For Second Direct Credit Fund

Apr 19 2017 | 12:05am ET

Connecticut-based private markets manager Portfolio Advisors has raised $740 million in capital commitments for its second direct credit fund.

The new fund, named PA Direct Credit Opportunities Fund II, held its final closing on March 31, 2017 and reached the top of its funding target, the company said. Support was received from existing and new investors, including pension funds, insurance companies, foundations, endowments, family offices and high net worth individuals both in the U.S. and abroad. Fund II has already invested over 30% of its capital in ten companies.

Similar to the company’s first direct credit vehicle, Fund II partners with top-tier private equity sponsors to provide junior debt financing to U.S. middle market companies undergoing buyouts, recapitalizations or growth equity transactions, the company said. Investments are typically in the form of second lien loans, senior notes or senior subordinated notes.

Portfolio Advisors’ direct credit investment team, led by Chuck Harper and Igor DaCosta, is the former DLJ Investment Partners team and was acquired from Credit Suisse in December 2013. The team’s senior investment professionals have invested nearly $2.2 billion in 50 middle market companies over the past 17 years.

Founded in 1994, Portfolio Advisors manages more than $37 billion across private equity, private debt and private real estate investment advisory and portfolio management services to an investor base of more than 1,100 limited partners. 

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