First Eagle Alternative Credit rakes in $2.2bn in past 12 months thanks to latest $1bn fund close

Jul 28, 2022 | News

First Eagle Alternative Credit has closed its fifth direct lending fund on over $1bn in total available capital, including leverage.

The firm has raised over $2.2bn in direct lending available capital in the past 12 months.

FEAC, the $21bn credit platform of First Eagle Investments, will provide loans to private equity-owned companies with an EBITDA between $5m and $50m, with an extra emphasis on companies with approximately $25m of EBITDA.

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The firm will also look for senior financing opportunities of up to $250m with hold sizes across the FEAC platform ranging from $25m to $125m.

Chris Flynn, president of First Eagle Alternative Credit, said, “Direct lending is a vital financing strategy for middle market businesses and their backing sponsors.

“Investors value our proprietary deal flow and as a result there was healthy demand for participation in our Direct Lending Fund V.

“Following record deployment in directly-originated loans in 2021, we are well-positioned to further build our portfolio, and we will continue to serve as a reliable lending partner to both new and existing sponsor clients.

FEAC was carved out from Thomas H Lee Partners in 2019 by First Eagle Investment Management. The firm has closed over 495 transactions and provided over $6.5bn in financing to mid-market companies mainly in business and financial services, healthcare, information services and technology and consumer services.

It closed Lake Shore MM CLO III on £318m in 2020 as the firm’s third collateralized loan obligation fund that includes middle market leveraged loans.

The previous middle market CLO offerings, THL Credit Lake Shore CLO II and THL Credit Lake Shore I, closed in September 2019 at $306m and in April 2019 at $411m, respectively.

Source: Altassets

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