Kirkland & Ellis LLP and Cleary Gottlieb Steen & Hamilton LLP successfully guided the close of a $2.3 billion private credit continuation fund, marking a landmark transaction in the private credit secondaries market. The fund, named BSP Debt Fund IV CV, represents the largest single-fund portfolio of its kind, according to the statement.
Kirkland & Ellis LLP advised Benefit Street Partners LLC, a credit-focused alternative asset manager, while London-headquartered Coller Capital, led by Cleary Gottlieb, spearheaded the transaction.
“We are delighted to have led this landmark transaction with Benefit Street Partners, which represents another significant step in the evolution of the credit secondaries market and highlights the diversified exposure and strength of the core middle market,” said Ed Goldstein, Partner and Chief Investment Officer at Coller Capital. “Our leadership role, combined with the quality of the portfolio and Benefit Street Partners’ established track record, made this a compelling opportunity for our investors.”
The continuation vehicle was created to acquire a “resilient, income-generating” portfolio of diversified senior secured, floating-rate loans from Benefit Street Partners’ 2016 vintage flagship direct lending fund, primarily consisting of first lien loans to U.S. middle market companies.
“This transaction underscores our ability to deliver strong outcomes for our investors while advancing innovation in the private credit secondaries market,” said Blair Faulstich, Head of Private Debt at Benefit Street Partners. “The continuation vehicle structure extends the life of our fourth flagship private credit vintage and positions the portfolio for continued success.”
