(Bloomberg) -- Silver Point Capital said it’s closed a $8.5 billion direct lending fund that will focus on providing loans to mid-sized companies, just two months after closing a $4.6 billion credit fund.
Silver Point Specialty Credit Fund III brings the firm’s direct lending strategy to over $15 billion in investable capital, the company said in a statement Monday. Silver Point added it now oversees $35 billion of assets across strategies including both private and public credit.
Fundraising in the $1.6 trillion private credit market has proliferated as lenders fight to remain competitive against peers as well as Wall Street banks. This year’s issuance of broadly syndicated US leveraged loans has topped $1 trillion for the first time this year.
Still, the likes of Silver Point are finding opportunities in some higher-yielding or riskier names.
“The pipeline within direct lending is strong, and the forthcoming environment will continue to provide for a wide array of investment opportunities across a mix of both sponsor and non-sponsor investments,” Anthony DiNello, Silver Point’s head of direct lending, said in the statement.
The firm recently helped refinance debt owed by Rayonier Advanced Materials Inc., Pure Fishing Inc. and recycling firm Gopher Resource. Since its 2002 founding by Goldman Sachs Group Inc. bankers Edward Mulé and Robert O’Shea, Silver Point has developed into a key distressed debt player in US markets and grown its presence in direct lending.
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