Providence Equity Partners’ credit investment arm Benefit Street Partners has held a $1.75bn final close for its third fund on its hard cap despite interest exceeding that figure.
The fund easily beat its initial $1bn target and surged to the hard cap figure after only a year in the fundraising market.
BSP raised its last fund in 2010, and has generated a gross IRR of about 18 per cent from the vehicle through the fourth quarter of 2013.
The unit manages more than $8.5bn in assets across credit strategies including private debt, long-short credit, long-only credit, commercial real estate debt and custom tailored separate accounts.
Thomas Gahan, BSP head and former Deutsche Bank Securities CEO, said, “We appreciate the commitment of our investors and their confidence in our team.
“The significant demand for the fund underscores the strength of our credit platform’s track record, particularly since multiple investors in this fund are also committed to one or more of our other credit products.
“Our entire team is focused on the significant opportunities ahead in credit and driving alpha for our investors.”
Providence CEO Jonathan Nelson added, “Tom and the BSP team share the same principals we all practice at Providence – integrity, discipline and creativity – and their insights into the global credit markets help inform our world view.
“They are an important complement to our private equity business, and with the support of our investors, we expect to continue to grow the platform in the years ahead.”
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