Connecticut-based FrontPoint Partners has commitments in excess of $1 billion for a fund that will specialize in senior secured loans to middle-market US companies.
The FrontPoint-SJC Direct Lending Fund will focus on privately negotiated loans to companies generating annual revenue of $75 million to $500 million and annual EBITDA of $7.5 million to $50 million. To date, the fund has invested about $165 million.
Steve Czech, FSJC founder and portfolio manager, said, “U.S. middle-market businesses have been left with relatively few financing sources as numerous middle-market direct lenders have either exited the direct lending business or are gravitating towards larger borrowers for both strategic and regulatory reasons. FSJC plans to fill that void for creditworthy businesses in need of secured debt that is required to expand their businesses and increase their hiring."
Czech and his team average 23 years of leveraged lending, corporate finance and restructuring experience across numerous industries and companies.
Said Dan Waters, FrontPoint co-CEO, “This is FrontPoint’s largest fund launch ever and it has attracted a diverse set of institutional investors including domestic and international pension funds, endowments, foundations, family offices and high net worth individuals.”
FrontPoint manages approximately $4.5 billion in assets and commitments across single and multi-strategy vehicles.