Chicago-based Adams Street Partners closed its second private credit program (PC II) with over $3 billion in capital commitments and leverage, officials at the $51 billion firm announced this week.
Adams Street’s PC II raised $2.1 billion in capital commitments, surpassing its original target of $1.5 billion with new investors such as pension plans, insurance companies and family offices in addition to existing investors. The firm now has $7.6 billion in private credit, including leverage, in a program that kicked off in 2016.
“The strong demand for Adams Street’s Private Credit offering shows the value of the asset class and the appetite in this market for investments that target high-yields while also prioritizing stable returns,” said Bill Sacher, partner and head of private credit in the New York office at the employee-owned firm. “Our team looks forward to continuing to work with our longstanding sponsor relationships.”
Adams Street’s Private Credit Team is a lender to middle market sponsor-backed transactions. Underlying investments within PC II currently have a loan-to-value ratio of less than 40% and an average debt multiple within 5X.
Jeff Diehl, managing partner and head of investments at Adams Street, added that the firm’s extensive relationships with buyout general partners help to secure exemplary deal flow and diligence insights. “Having a seat at that table provides our Private Credit strategy investment vehicles with real value,” said Diehl. “The Private Credit platform has exceeded our expectations and we look forward to continued growth of this strategy.”