Fund Friday: Top fundraising news in private equity

Blackstone has begun raising capital for the second vintage of its senior direct lending strategy, following the strong performance of its inaugural $22bn fund, according to sources cited by Bloomberg.

The first Senior Direct Lending Fund closed just over a year ago at more than double its original $10bn target and has delivered a 12% net return on a levered basis, according to regulatory filings.

Series II will continue to focus on large-cap and mid-market lending, using a hybrid structure that blends features of drawdown vehicles and evergreen funds. The model allows investors to lock up capital for fixed periods while still offering periodic entry and exit points.

Blue Pool Capital, the investment firm backed by Alibaba co-founder Joe Tsai, is raising $750m for its first direct private equity fund as it expands into external asset management, according to a report by the Financial Times.

The new vehicle, named Riverside, will invest in consumer, financial, and technology companies globally, including in China, marking a major step in Blue Pool’s evolution from managing internal capital to managing outside investors’ funds.

Founded by former Citadel partner Oliver Weisberg, Blue Pool manages several billion dollars in assets, including investments from Tsai and other Alibaba associates. The firm also operates Tsai’s family office, which owns sports franchises including the Brooklyn Nets and the New York Liberty, as well as stakes in the Miami Dolphins and the Barclays Center.

Neuberger Berman has announced the final close of its fifth private debt fund, NB Private Debt V, raising $7.3bn including leverage and exceeding its initial target.

The fund will invest primarily in senior secured, first-lien, and unitranche loans to private equity-owned companies in the US, continuing the firm’s strategy of focusing on high-quality borrowers and capital preservation.

“We are deeply grateful for our investors’ ongoing trust and support,” said Susan Kasser, Head of Private Debt at Neuberger Berman. “Capital preservation is our first priority. Since inception, our annualized default and loss rates remain low at just 0.02% and 0.01%, respectively, as our assets under management continue to grow.”