Adams Street Partners has raised $7.5 billion for its third private credit vehicle, becoming the latest firm to do so despite volatility in the market.
The private credit team is focused on providing senior financing to sponsor-backed middle-market companies.
The fund, which targets institutional investors, drew capital from a global investor base, with 40% of commitments coming from outside the U.S., the firm reported. The Chicago-based private equity firm said it plans to further expand its presence in Europe alongside its North American operations.
According to Bill Sacher, Adams Street Partner and Head of Private Credit, the fundraise reflects “investors’ confidence.”
On average, the underlying investments in PC III show what the firm describes as “conservative credit characteristics”, including loan-to-value ratios below 40%, an average multiple of about 5x, and strong creditor protections such as maintenance-based covenants.
Adams Street Managing Partner Jeff Diehl credits the firm’s success to “disciplined diligence, rigorous underwriting, and long-standing sponsor relationships.”
“We believe managers with true sourcing and underwriting edge will be …
This post was originally published here
