GoldenTree Announces Closing of Oversubscribed Private Credit Fund II
Private Credit Fund II oversubscribed at hard cap of $2.75 billion, delivering a net IRR of over 20%
Predecessor vintage delivering 16% net IRR and 1.4x net multiple, representing top-decile returns
GoldenTree Asset Management (“GoldenTree”), a global asset management firm with approximately $70 billion in assets under management, today announced the closing of its Private Credit Fund II (the “Fund”). The Fund is oversubscribed at its hard cap of $2.75 billion, reflecting strong demand from a global investor base that includes public and corporate pensions, sovereign funds, foundations, insurance companies, family offices and RIAs across the US, Europe, Asia and the Middle East. Over $800 million of the Fund’s commitments come through a rated feeder structure that provides investors capital-efficient access to the strategy. GoldenTree’s partners and employees committed $50 million to the Fund, demonstrating the firm’s conviction in the strategy and its strong alignment with investors.
The Fund has already deployed close to 40% of commitments across approximately 50 investments in over 10 industries and is delivering a net IRR of over 20%. The Fund follows its predecessor vintage that deployed over 90% of commitments and is delivering a 16% net IRR and a 1.4x net multiple – representing top-decile returns versus peers. Focused on larger companies with average EBITDA exceeding $400mm, of the over 100 investments made in the prior fund, already more than 40 have been fully realized with unlevered gross returns of 14%. These realized investments have an average holding period of less than two years, illustrating the solution-oriented, transitional characteristics, allowing the Fund to recycle capital to compound returns and target higher net multiples than those typically achieved in the industry.
