Coller Capital raises $1.4bn credit secondaries fund as LPs seek liquidity

Coller Capital, a private equity secondary investor, is nearing the close of its inaugural fund dedicated to private debt secondary deals, joining a growing group of investors diving into the sector as increasing demand from LPs for liquidity drives an expansion in the market.

Coller’s debut credit secondaries fund, dubbed Coller Credit Opportunities I (CCO I), is expected to collect $1.4 billion in investor commitments, including co-investment capital, according to an announcement from the firm.

London-headquartered Coller launched the vehicle in May last year with an initial target of $750 million. Investors in CCO I include pension plans, insurance companies, endowments, foundations and family offices.

Private debt secondary funds raised $2.55 billion globally last year, compared with $640 million in 2020, according to a report released by the secondary advisory firm Setter Capital.

In another example of growing interest in private debt, Apollo Global Management last year launched a $1 billion credit secondaries business, which aims to capitalize on the continued growth of private credit and to address investors’ liquidity needs. The giant credit manager also said it is looking to raise a fund dedicated to “the burgeoning” second-hand private debt asset class.

Coller has already deployed capital from CCO I, including leading a $680 million transaction to purchase a portfolio of four credit funds held by Ping An Overseas Holding, an offshore investment arm of China’s Ping An Insurance.

While the majority of secondary activity remains PE-related, in the past couple of years private debt transactions have grown to become a notable part of the secondary market.

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