NXT Capital Raises $312M For Fourth Private Debt Fund

Oct 6 2016 | 11:51pm ET

NXT Capital LLC has announced the fourth and final close of its fourth private debt fund, raising $312 million for senior secured loans made primarily to private equity-sponsored middle market companies across a wide range of industries in the U.S.

The new fund, named NXT Capital Senior Loan Fund IV, L.P., received equity commitments from U.S. and international institutional investors, including public and private pension plans, insurance companies and foundations. In addition, the firm is expecting a $600 million syndicated credit facility to be provided by Wells Fargo in the fourth quarter, bringing the fund’s total investment capacity including leverage to $900 million.

Third-party capital commitments to NXT Capital’s asset management business now total more than $5 billion, the company said in a statement. 

“The interest we have seen in our asset management programs from new and existing investors further demonstrates the appeal of middle market loans to institutional investors,” said NXT Chairman and CEO Robert Radway. “NXT Capital Senior Loan Fund IV further strengthens our position as a leading provider of leveraged finance to the middle market and enhances our ability to meet the financing needs of our clients.”

Based in Chicago, NXT Capital has closed more than 500 structured finance transactions representing $14.6 billion since inception in 2010. 

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