Global private equity firm Partners Group AG recently said that it has raised USD800 million (EUR595.6 million) for its latest mid-cap leveraged loan fund.
Real Deals in a report said that the Swiss investment firm is anticipating an investment spree over the next year to meet demand. Partners Group expects the fund to yield returns more quickly than ordinary private funds.
Partners Group raised the fund to address the financing gap felt by mid-market sponsors, Real Deals said. The financing gap resulted to corporate sponsors turning on club deals with constrained banks.
According to Real Deals, the demand for refinancing and the continued expiry of collateralized loan obligation (CLO) money paved the way for private debt funds. Similar private loan funds were raised early this year by private equity firms Ardian, HIG WhiteHorse and BlueBay.
Moreover, historic-low interest rates and negative real-term yields on government bonds forced investors to seek out better returns in higher-risk credit, the report said.
Partners Group has backed 40 credits in the last three quarters.
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