First Eagle Alternative Credit just closed its fifth direct lending fund at over $1 billion, including leverage.
Direct Lending Fund V will invest in line with the $21 billion firm’s industry-oriented lending business. Based in Boston, First Eagle provides loans to private equity-owned companies with EBITDA between $5 million and $50 million. The emphasis remains on companies with roughly $25 million in EBITDA. First Eagle invests up to $250 million in senior financing opportunities with hold sizes ranging from $25 million to $125 million, officials said.
“Direct lending is a vital financing strategy for middle market businesses and their backing sponsors,” said Chris Flynn, president of First Eagle Alternative Credit. “Investors value our proprietary deal flow and as a result there was healthy demand for participation in our Direct Lending Fund V.”
The fund’s close follows the team’s record deployment in directly originated loans in 2021. In the past 12 months, First Eagle has created over $2.2 billion in available capital to support its direct lending origination business through two middle market CLOs, an interval fund and separate accounts in addition to the Direct Lending Fund V.
“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,” Flynn added.
The firm was founded as THL Credit in 2007 and since then has closed over 495 transactions and provided over $6.5 billion in financing to middle market companies across business and financial services; healthcare; information services and technology; and consumer services.