BlackRock raises half of $4bn-targeting global credit opportunities fund, aiming to double size of predecessor

May 4, 2022 | News

BlackRock is reportedly looking to raise a hefty $4bn for its new global credit opportunities fund amid an expanding market, doubling the size of its already hefty $2bn predecessor.

The asset manager has already raised $2bn, attaining half of the target amount, according to a Bloomberg report.

BlackRock’s global private credit funds provide financing to borrowers that are shut out of traditional debt markets because of financial distress, size or other factors.

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According to its website, the vertical covers a spectrum from opportunistic and distressed debt, to mid-market investing and specialty finance.

The firm closed its first global credit opportunities fund on $2bn three years ago.

BlackRock closed its fourth private equity infrastructure equity fund on €1.4bn in January. It also closed a $1.67bn infra debt fund last year.

The market for private credit instruments has swelled to more than $1trn. Thoma Bravo, Carlyle, 17Capital and Monroe Capital have all closed their vehicles last month.

Thoma Bravo had $3.3bn of leveraged capital available for credit investments thanks to the final close of its sophomore fund in the strategy.

The firm said the closing of Credit Fund II followed a record year of deployment for the platform in 2021, investing over $2bn into 39 portfolio companies.

Global private equity giant Carlyle hit a $4.6bn hard cap close for its second credit opportunities fund, smashing its initial $3.5bn target.

The new vehicle is almost double the size of Carlyle’s debut Credit Opportunities Fund closed in the summer of 2019, and gives the firm about $6bn of new investable capital including leverage.

17Capital raised $2.9bn to close what is believed to be the largest private credit fund raised since 2009, soaring past its $1.65m target.

Private credit specialist Monroe Capital soared to a $2.3bn final close for its latest fundraise thanks to commitments from more than 300 investors. The firm said 2022 Monroe Capital Private Credit Fund IV will have $4.8bn of investable capital, including targeted fund leverage and separately managed accounts.

Source: Altassets

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