TA Associates’ TA Debt Fund V has closed with more than $1.1 billion in assets after launching earlier this year.
The new fund is significantly larger than its predecessor fund, TA Subordinated Debt Fund IV, which closed at $542 million.
The oversubscribed debt fund follows an active third quarter for the $45 billion private equity firm, including new investments in Hornetsecurity, an international cloud security and compliance SaaS provider; Technosylva, a provider of wildfire simulation modeling; Green Street, a supplier of commercial real estate intelligence and analytics; and Intelerad, a developer of enterprise medical imaging solutions, amongst others.
“TA Debt Fund V is an exciting milestone in the continued evolution of our debt investing strategy,” said Ajit Nedungadi, chief executive officer at TA. “TA’s proven industry expertise, deep understanding of market trends and highly experienced Capital Markets Group are integral to our continued success with this strategy going forward. We are enormously grateful for our investors’ continued confidence in the team and our ability to deliver value to our partners and portfolio companies.”
Continuing the legacy of predecessor funds, the TA Debt Fund V will invest in the most attractive credits of both new and existing TA portfolio companies. The fund’s mandate includes senior secured debt and the continued investment in more traditional TA subordinated debt investments.
“We believe TA Debt Fund V is a unique product in the market,” said Tony Marsh, managing director and chief capital markets officer at TA. “We have built on our capabilities in subordinated debt investing and broadened the mandate to include access to large captive opportunity created by the significant demand for debt financing across our portfolio.”
Officials added that the fund will have exposure across the debt capital structure with the option to invest across multiple tranches of credit in the same company. The TA portfolio companies slated to receive debt financing are across five target sectors — technology, healthcare, financial services, consumer and business services.
