NXT Capital Raises ~$450M For Latest Private Debt Fund

Nov 8 2017 | 10:32pm ET

NXT Capital has raised approximately $450 million of equity capital for its fifth private debt fund, significantly exceeding its target. 

The new fund, named NXT Capital Senior Loan Fund V, will invest in senior debt transactions directly originated and underwritten by NXT Capital’s corporate finance group, the company said. Its original target was $350 million.

When coupled with targeted leverage, fund V will have approximately $1.2 billion of available capital to invest, the statement added. 

As with previous funds, Fund V’s investment strategy is focused on senior secured loans, including straight senior, stretch senior and unitranche loans made primarily to private equity sponsored middle-market companies across a wide range of industries in the United States.

Equity commitments were received from U.S. and foreign institutional investors, including leading public and private pension plans, insurance companies, foundations and asset managers. Wells Fargo Bank N.A. is the administrative agent for Fund V’s syndicated credit facility.

The addition of Fund V increases third-party capital commitments to NXT Capital’s asset management platform to over $5.7 billion, the company said. Its fourth private debt fund raised $312 million just over a year ago.

Based in Chicago, NXT Capital has closed more than 590 structured finance transactions representing $18 billion in financing volume since inception in 2010. It has on- and off-balance sheet committed capital of more than $10 billion. 

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